What are the short-run economic effects when U.S. firms substitute labor outside of the U.S. for labor inside the U.S.?
A) The wage rate in the U.S. will remain the same, and the wage rate in the foreign country will decrease.
B) The wage rate in the U.S. will increase, and the wage rate in the foreign country will decrease.
C) The wage rate in the U.S. will decrease, and the wage rate in the foreign country will decrease.
D) The wage rate in the U.S. will decrease, and the wage rate in the foreign country will increase.
Answer: D
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Which of the following CORRECTLY defines utilitarianism?
A) Cost will increase if production increases. B) The difference between what a consumer is willing to pay and what actually has to be paid. C) Society should strive to achieve the greatest good for the greatest number. D) Equality will not result in efficient outcomes.
Figure 8-1
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Given the scatter diagram in Figure 8-1, what is the MPC (your best estimate)?
A. 1/2 B. 1/3 C. 2/3 D. 1
If marginal cost is greater than average variable cost, average variable cost will:
A. increase as output increases. B. equal average total cost. C. not change as output increases. D. decrease as output increases.
A direct relationship is expressed graphically as a:
A. positively sloped line or curve. B. negatively sloped line or curve. C. horizontal line. D. vertical line.