Which of the Following Is a Strategy That the EU

question 17

Multiple Choice

Which of the following is a strategy that the EU employs in an effort to reduce costs of production in the wealthiest EU member countries?

• A) relocate factories from wealthy EU countries to lower-wage countries in the EU
• B) raise tariffs within the EU
• C) move companies to Mexico, Southeast Asia, or China
• D) reduce wages and eliminate jobs in the wealthy countries of North Europe

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Definitions:

Income

The revenue brought in, consistently over time, from professional endeavors or investments.

Budget Constraint

The limits imposed on household choices by income, prices, and taxes, defining the combination of goods and services they can afford.

Income

Proceeds obtained, often periodically, from labor or investment returns.

Utility

A measure of satisfaction or happiness that consumers derive from the consumption of goods and services.