Vernon Predicts That as the Demand for a New Product

question 79

Multiple Choice

Vernon predicts that as the demand for a new product starts to grow in other advanced countries, in the long run

• A) the cost of labor in these advanced countries begins to increase.
• B) it becomes profitable for foreign firms to invest in production facilities in the United States.
• C) the firms in the United States begin to gain an absolute advantage.
• D) it begins to limit the potential for exports from the United States.
• E) the same product will begin to command a higher price.

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Definitions:

Native Americans

Indigenous peoples of the Americas, present before the arrival of European settlers, with distinct cultures, languages, and histories, and who faced displacement and challenges to their way of life due to colonization.

Moral Suasion

The abolitionist strategy that sought to end slavery by persuading both slaveowners and complicit northerners that the institution was evil.

Moral Reform Groups

Organizations that emerged, particularly in the 19th century, with the goal of improving society by combating perceived moral failings, such as alcohol consumption, gambling, and prostitution.

Gilded Age

A term describing the late 19th century period in the United States marked by rapid industrialization, economic growth, and ostentatious wealth among the upper class.