A large number of U.S. firms send jobs to low-wage nations as it enables them to:
a. raise the price of their products.
b. reduce their cost of production.
c. get better quality products.
d. obtain diversified products.
e. politically dominate the economies where they are offshoring.
Question 2
Which of the following goods is likely to have an income elasticity of demand that is less than zero?
a. A luxury yacht
b. A beach house
c. A state-of-the-art cellular phone
d. A box of generic macaroni and cheese dinner
e. A dinner at a French restaurant
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