Final answer:
The statement is generally false as Belgium, Germany, Denmark, Norway, and Switzerland typically have higher hourly compensation costs compared to the United States, due to stronger labor protections and benefits. The correct answer is option b.
Step-by-step explanation:
The statement that hourly compensation costs for manufacturing production workers in Belgium, Germany, Denmark, Norway, and Switzerland were lower than those in the United States is generally false. These countries are known to have high labor costs, including higher wages and social benefits. In fact, the United States often has lower labor costs in comparison to these European countries, where workers enjoy strong labor protections and benefits. This is influenced by various factors, including unionization rates, minimum wage laws, and social welfare policies. For instance, countries like France and Spain may have union membership rates similar to the United States, but union negotiations often determine pay even for nonunion employees, which can contribute to overall higher wage costs. Furthermore, the labor standards in high-income countries are similar and typically more worker-friendly than those in low-income countries, contrasting with the $7.25 per hour minimum wage in the U.S.
Moreover, when considering productivity growth rates as a related topic, if Canadian workers have an initial productivity level of $30 per hour with a growth rate of 1% per year, and UK workers have an initial productivity level of $25 per hour with a growth rate of 3% per year, after five years, UK workers would have a higher productivity level. The difference in productivity levels can be calculated using the respective growth rates over the five-year period.