Explain the implications of outsourcing for employment and wages in the domestic and foreign labor markets
What will be an ideal response?
If domestic firms out source their jobs abroad, then there will be a decrease in the demand for domestic workers and an increase in the demand for foreign workers that are substitutable for the domestic workers. As a result, the domestic labor demand curve shifts leftward, so equilibrium domestic employment and the market clearing domestic wage will decrease. The foreign labor demand curve shifts rightward, so equilibrium foreign employment and the market clearing foreign wage will increase.
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________ was the main proponent of the view that changes in the money supply can drive business cycles
A) Milton Friedman B) John Maynard Keynes C) Adam Smith D) David Ricardo
Refer to the above figure. Between points f and g, the opportunity cost of producing 75 more bushels of wheat is
A) 1 bushel of beans. B) 4 bushels of beans. C) 25 bushels of beans. D) 100 bushels of beans.