The relocation of production that was once done in the U.S. to foreign nations is called
A. insourcing.
B. outsourcing.
C. technological change.
D. unfair trade.
Answer: B. outsourcing.
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If real GDP is less than potential GDP, then the money wage rate ________, and aggregate supply ________ so that the price level ________
A) rises; decreases; rises B) does not change; increases; falls C) falls; decreases; rises D) rises; increases; falls E) falls; increases; falls
Jane produces only corn, measured in tons, and cloth, measured in bolts. For her, the opportunity cost of one more ton of corn is
A) the same as the opportunity cost of one more bolt of cloth. B) the inverse of the opportunity cost of one more bolt of cloth. C) the ratio of all the bolts of cloth she produces to all the tons of corn she produces. D) the ratio of all the tons of corn she produces to all the bolts of cloth she produces.
Which of the following is not true when the firm experiences diminishing marginal product?
A. The total product is decreasing. B. The marginal product of the previous worker is higher than the current worker. C. The firm is operating in the short run. D. The firm's total cost is increasing.
A business organization that employs resources to produce goods and services for profit is
A) economic rent. B) a firm. C) inside information. D) the opportunity cost of capital.