A firm's employment of labor outside the country in which the firm is located is called
A) featherbedding.
B) a lockout.
C) outsourcing.
D) dumping.
Answer: C
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Suppose the dollar depreciates from 89 Japanese yen to 79 Japanese yen. One would expect
A. U.S. imports to increase B. U.S. exports to increase. C. Japanese exports to increase. D. Japanese net exports to increase.
The data show that money growth and inflation are
A) positively correlated. B) negatively correlated. C) not correlated. D) independent phenomena.
An income tax provides an incentive to _____
a. work for large companies b. increase investment c. substitute away from being self-employed d. consume more and save less
If the demand for bananas is elastic, then an increase in the price of bananas will
a. increase total revenue of banana sellers. b. decrease total revenue of banana sellers. c. not change total revenue of banana sellers. d. There is not enough information to answer this question.