With the Importation (Offshoring) of Components and

question 14

Multiple Choice

With the importation (offshoring) of components and
Exportation of R&D, what happens to total production in
The economy?

• A)It declines.
• B)It becomes more expensive due to higher wages.
• C)It increases, and-because it uses the same amounts of labor-production is more efficient.
• D)Productivity and efficiency decline.

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Definitions:

Utility Function

A mathematical representation that relates an individual’s consumption bundle to the level of satisfaction or utility derived from it.

Marginal Utility

The additional satisfaction or utility gained from consuming or using one more unit of a good or service.

Interest Rate

The percentage of a sum of money charged for its use, which can be seen as the cost of borrowing money or the return on saving.

Rule Of 70

A method used to estimate the number of years it will take for a variable to double, calculated by dividing 70 by the annual growth rate.