1.In theory, some people might lose in the short run from outsourcing, but in th
ID: 1165737 • Letter: 1
Question
1.In theory, some people might lose in the short run from outsourcing, but in the long run, all should benefit. Which option demonstrates that this theory might NOT be true?
A.Lower labor costs lead to lower prices, so more foreigners can buy imports.
B.Income earned at outsourced jobs allows foreign workers to purchase imports.
C.Lower prices allow more consumers to buy the good domestically.
D.Outsourcing stimulates competition.
E. Inadequate transition programs hinder the ability of domestic workers, who lost their jobs to outsourcing, to obtain new jobs.
2.What theory would suggest that learning material on your own generates the same benefits as those achieved by formally attending classes and receiving a degree?
A.human capital
B.signal
C. compensating differentials
D.winner-take-all
E.efficiency wage
3.Using an efficiency wage theory, why do some individuals earn more than the market equilibrium wage?
A.Workers who earn more are those who are more productive.
B. Workers need to earn more to be willing to accept dangerous working conditions.
C.Workers need to earn more to be willing to accept a safe indoor job.
D.Workers who are more educated and better trained are able to earn more than the equilibrium wage.
E.Workers who earn more tend to be concentrated in a single occupation.
Explanation / Answer
Ans1) the correct option is E. Inadequate transition programs hinder the ability of domestic workers, who lost their jobs to outsourcing, to obtain new jobs.
Ans2) The correct option is C. compensating differentials
Ans3) the correct option is A.Workers who earn more are those who are more productive.
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