The fundamental reason firms outsource is that:
A. low-wage workers in other countries are more productive than are U.S. workers.
B. U.S. workers cannot perform the tasks performed by workers in other countries.
C. hiring low-wage workers overseas reduces firms' costs.
D. outsourcing increases employment overseas.
Answer: C
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Starting from long-run equilibrium, an increase in autonomous consumption results in ________ output in the short run and ________ output in the long run.
A. higher; higher B. higher; potential C. lower; higher D. lower; potential
The current account balance equals
A) net exports + net transfers + net interest. B) net exports + net transfers. C) net exports - net transfers + net interest. D) net exports - net transfers - net interest. E) net exports + net transfers - net interest.
The equilibrium level of aggregate planned expenditure is found where
A) there is no saving and no dissaving. B) net exports is zero. C) aggregate planned expenditure equals real GDP. D) autonomous expenditure equals equilibrium expenditure. E) the price level is rising at a constant rate.
The federal agencies that examine banks include
A) the Federal Reserve System. B) the Internal Revenue Service. C) the SEC. D) the U.S. Treasury.