If company X is successfully outsourcing its production of T-shirts to China, it is
a. Creating wealth by moving labor in China from lower value use to higher value use
b. Should be stopped on economic grounds since it is destroying wealth
c. Destroying wealth by acquiring cheaper labor from China
d. Both A & C
a
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In the Keynesian model, a $1 billion increase in autonomous consumption leads to ________ in short-run equilibrium output.
A. a $1 billion decrease B. a $1 billion increase C. no change D. a greater than $1 billion increase
Technological change in modern societies is most likely the result of increases in
a. machine building. b. more natural resource use. c. education. d. the labor force.
A monopoly firm can sell 150 units of output for $10 per unit. Alternatively, it can sell 151 units of output for $9.98 per unit. The marginal revenue of the 151st unit of output is
a. -$6.98. b. -$0.02. c. $2.45. d. $6.98.
The wealth effect stems from the idea that a higher price level
a. increases the real value of households' money holdings. b. decreases the real value of households' money holdings. c. increases the real value of the domestic currency in foreign-exchange markets. d. decreases the real value of the domestic currency in foreign-exchange markets.