One reason some manufacturing companies have moved production from overseas locations back to the United States is rising foreign labor costs. Assuming that managers at these companies used all available information, including the rising cost of foreign
labor, when making the decision to move production back to the United States exemplifies which key economic idea?
A) People are rational.
B) People respond to economic incentives.
C) Optimal decisions are made at the margin.
D) The market system relies on the principle of voluntary exchange.
Answer: A
Economics
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An increase in supply is shown by:
a) a movement up along the supply curve. b) a movement down along the supply curve. c) a rightward shift of the supply curve. d) a leftward shift of the supply curve. e) an initial movement up and then down along the same supply curve.
Economics
Explain the concept of “lender of last resort.” What is discount rate?
What will be an ideal response?
Economics