Suppose that U.S. firms outsource plane manufacturing jobs to China, it is expected that

A) the wage rate for workers manufacturing planes will decrease in the U.S. but increase in China.
B) the wage rate for workers manufacturing planes will increase in the U.S. but decrease in China.
C) the wage rate for workers manufacturing planes will increase in both the U.S. and China.
D) the wage rate for workers manufacturing planes will decrease in both the U.S. and China.


Answer: A) the wage rate for workers manufacturing planes will decrease in the U.S. but increase in China.

Economics

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The change in total cost from producing another unit of output equals the

A) average total cost. B) variable cost. C) average variable cost. D) marginal cost.

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On Friday May 3, 2013, the headlines in the list appeared in The Wall Street Journal. Classify each headline as a signal that the news article is about a microeconomic topic or a macroeconomic topic. Explain your answers

What will be an ideal response?

Economics

Which of the following attitudes will be held by a typical firm in a typical cartel?

A. If I alone cheat, I’m better off; if everyone cheats, I’m worse off. B. I can never do better for myself than by following agreed-upon cartel policies. C. If everyone cheats, I’m better off and so is everyone else in the cartel. D. If I suspect others are planning to cheat, I’ll do best for myself by deciding not to cheat.

Economics

Which legislative act provided for the industrial regulation of the railroad industry by the Federal government?

A. Interstate Commerce Act B. Railway Labor Act C. Sherman Act D. Clayton Act

Economics