Which of the Following Is Not an Example of an Economic

question 173

Multiple Choice

Which of the following is not an example of an economic trade-off that a firm has to make?

• A) whether it is cheaper to produce with more machines or with more workers
• B) whether it is to outsource the production of a good or service
• C) whether or not consumers will buy its products
• D) whether it should produce more of its product

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Definitions:

Geographic Proximate

The physical closeness or distance of places or entities, influencing interactions and relationships due to location.

Administrative Differences

Variations in the organization, procedures, or policies between different businesses, governments, or institutions.

Liability of Foreignness

The disadvantages or additional costs that firms operating outside their home countries incur, compared to local firms.

Natural Resources

Materials or substances that occur in nature and can be used for economic gain, such as minerals, forests, water, and fertile land.