Which of the Following Is Not an Example of an Economic

question 147

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 cheaper 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:

Heckscher-Ohlin Theorem

An economic theory stating that countries export what they can most efficiently and abundantly produce, based on their factor endowments of labor and capital.

Pharmaceuticals

Products and substances manufactured and sold for the diagnosis, treatment, or prevention of diseases and health conditions.

Automobiles

Motor vehicles designed for transporting passengers, commonly on roads, ranging from cars to buses.

Heckscher-Ohlin Theorem

An economic theory stating that countries export goods requiring abundant factors of production they possess, and import goods requiring factors they lack.