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.
D
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Increases in the debt—GDP ratio are primarily caused by
A) a high growth rate of GDP. B) a high government deficit relative to GDP. C) increases in government borrowing through bonds. D) increases in interest rates.
China's prosperity brings income gap The Asian Development Bank [ADB] reports that China has the largest gap between the rich and the poor in Asia
Ifzal Ali, the ADB's chief economist, claims it is not that the rich are getting richer and the poor are getting poorer, but that the rich are getting richer faster than the poor. Source: Financial Times, August 9, 2007 Explain how the distribution of personal income in China can be getting more unequal even though the poorest 20 percent are getting richer.
How can changes over time of the average height of the people in a country help to indicate the standard of living in a country?
What will be an ideal response?
Refer to Figure 15-4. What is the profit-maximizing/loss-minimizing output level?
A) 600 units B) 800 units C) 940 units D) 1,160 units