Offshoring by domestic firms causes job losses not job expansion in the home market
Indicate whether the statement is true or false
FALSE
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Refer to Figure 27-11. In the graph above, the shift from AD1 to AD2 represents the total change in aggregate demand. If government purchases increased by $50 billion, then the distance from point A to point B ________ $50 billion
A) may be greater than or less than B) would be less than C) would be greater than D) would be equal to
A change in the supply of one factor of production
a. can alter the earnings of all of the other factors. b. alters the earnings of capital and labor but not land. c. will not change the marginal productivities of other factors but may change their prices. d. alters the earnings of that factor only.
Which of the following are necessary components of a normative statement?
a. objective; testable b. subjective; contestable c. objective; contestable d. subjective; testable
Assume the standard trade model with two countries (Alpha and Beta), two goods (food and drink), and two factors of production (land and labor). Further assume that Alpha is relatively labor-abundant and food is relatively land-intensive. If the countries engage in free trade, Beta will
A. export drink and import food. B. import drink and export food. C. export both food and drink. D. import both food and drink.