According to Matthew Slaughter, as reported in the Case in Point on outsourcing, which of the following is a reason that suggests outsourcing might actually increase domestic employment?
A) Reduced costs make domestic firms more likely to expand the quantities they produce.
B) Lower costs may lead firms to increase the scale of their operations which could generate more domestic employment.
C) A firm that engages in outsourcing is likely to increase its scope of operations.
D) all of the above
Ans: D) all of the above
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Studies and experience suggest that labor and capital are highly complementary inputs to the production of pipe organs
Indicate whether the statement is true or false
Behavioral economists use which technique to test economic theory?
A) controlled experiments B) price theory C) environmental economics D) lie detector tests
According to adaptive expectations theory, which of the following would be the result of expansionary monetary and fiscal policies?
a. The economy self-corrects to the natural rate of unemployment. b. There is no long-run trade off between inflation and unemployment. c. The inflation rate rises. d. All of these.
If the nominal interest rate is 5 percent and the rate of inflation is -2.5 percent, then the real interest rate is
a. -7.5 percent. b. -2.5 percent. c. 2.5 percent. d. 7.5 percent.