When an economic event takes place, changes may ripple throughout the economy for months before monetary authorities begin to see changes in the data. This is known as the:

What is outsourcing?

A) The process of vertically integrating the factors of production. B) The process of selling products overseas bypassing import tariffs. C) The movement of production to affiliate firms outside of the country. D) None of the above.

Suppose that there is an excess supply of economics professors. Should universities necessarily reduce salaries? What does standard economic theory suggest? What does efficiency-wage theory suggest?