Suppose that U.S. firms outsource plane manufacturing jobs to China, it is expected that
A) the wage rate for workers manufacturing planes will decrease in the U.S. but increase in China.
B) the wage rate for workers manufacturing planes will increase in the U.S. but decrease in China.
C) the wage rate for workers manufacturing planes will increase in both the U.S. and China.
D) the wage rate for workers manufacturing planes will decrease in both the U.S. and China.
Answer: A) the wage rate for workers manufacturing planes will decrease in the U.S. but increase in China.
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Exclusive rights of ownership that allow the use, transfer, and exchange of property are called
A) common property rights. B) nonexclusive property rights. C) private property rights. D) public property rights.
One method for a deficit country to correct the situation under a fixed exchange rate system is to
a. increase aggregate demand with stimulative monetary policy. b. increase aggregate supply with tax cuts. c. decrease aggregate demand with restrictive fiscal and monetary policy. d. decrease aggregate supply with restrictive fiscal policy.