Why are a large number of IT jobs being outsourced to China and India?
a. India and China experience large balance of payment deficits.
b. India and China are highly capital intensive economies.
c. India and China have abundant supply of cheap skilled labor.
d. India and China offers the best working conditions for the employees.
e. India and China experiences balance of payment surpluses.
Question 2
An inferior good or service is any good or service for which:
a. an increase in price causes an increase in the quantity demanded.
b. a decrease in price causes an increase in demand.
c. an increase in price causes a decrease in the quantity demanded.
d. an increase in the amount consumed causes a decrease in marginal utility.
e. an increase in income causes a decrease in demand.
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