Which of the following statements is FALSE about the long-run effects of outsourcing?
A) Outsourcing allows countries to specialize in producing what they can produce most efficiently.
B) More goods and services can be produced than in the absence of outsourcing.
C) Globally wages will increase because of outsourcing.
D) Employment levels will decrease globally as the result of outsourcing.
Answer: D
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If the nominal interest rate is above the equilibrium value, then the quantity demanded of money is ________ than the quantity supplied of money, bond prices will ________, and the nominal interest rate will ________.
A. greater; rise; increase B. less; rise; decrease C. greater; fall; increase D. less; fall; increase
What is search activity and how does it influence consumer surplus when a rent ceiling creates a housing shortage?
What will be an ideal response?
According to the textbook, government price controls fail because:
A. bureaucrats lack accurate market data. B. firms ignore the price controls. C. legislation cannot alter basic economic incentives. D. they are not enforced by government.
If the rate of technical progress decreases, then the growth
A. of the labor force will decrease. B. of the capital stock will decrease. C. rate of potential GDP will decrease. D. rate of unemployment will decrease.