Which of the following best describes economists' general assessment of the impacts of offshoring?
A. Offshoring has an overall negative impact on the U.S. economy because of the significant
domestic job losses it causes.
B. Offshoring benefits the U.S. economy by promoting greater specialization and exchange of
goods and services based on comparative advantage.
C. Offshoring provides some cost advantages but generally results in much-lower-quality
goods for consumers.
D. Job losses from offshoring are magnified by job losses in complementary industries.
B. Offshoring benefits the U.S. economy by promoting greater specialization and exchange of
goods and services based on comparative advantage.
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Would it ever make sense for a firm to charge a price at or below the cost of the product?
What will be an ideal response?
Efficiency in the choice of outputs requires that marginal cost be equal to marginal revenue and nothing else.
Answer the following statement true (T) or false (F)
If the interest rate increased, which of the following would occur?
a. Nothing would occur. b. The consumption-income line would shift downward. c. The consumption-income line would shifts upward. d. There would be an rightward movement along the consumption-income line. e. There would be a leftward movement along the consumption-income line.
Define the following terms and explain their importance to the study of economics:
a. antitrust policy b. economies of scale c. economies of scope