📚 Learning Guide
Exploitation in Capitalism
hard

In the context of neoliberalism, how does labor exploitation manifest within a capitalist system?

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Learning Path

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Choose the Best Answer

A

By increasing minimum wage to reduce poverty

B

Through deregulation and the weakening of labor unions

C

By promoting employee benefits and job security

D

By ensuring fair trade practices globally

Understanding the Answer

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Answer

Labor exploitation in a capitalist system under neoliberalism occurs when workers are paid less than the value of what they produce. This means that companies make more profit by cutting costs, often by paying lower wages or reducing benefits for their employees. For example, if a factory produces shoes worth $100 but pays workers only $40 in wages, the company keeps the extra $60 as profit. Neoliberal policies often promote deregulation, which can weaken labor protections, making it easier for companies to exploit workers. As a result, workers may struggle to meet their basic needs while their employers benefit from their hard work without fairly compensating them.

Detailed Explanation

Labor exploitation happens when rules are relaxed and workers have less power. Other options are incorrect because Some might think raising wages helps everyone; It's a common belief that benefits mean fair treatment.

Key Concepts

Labor exploitation
Neoliberalism
Capitalist system
Topic

Exploitation in Capitalism

Difficulty

hard level question

Cognitive Level

understand

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