Outsourcing Refers to Contracting a Portion of Operations to a Third

question 33

Multiple Choice

Outsourcing refers to contracting a portion of operations to a third party.Such outsourcing ______.

• A)refers to third-party contracting for manufacturing only
• B)refers to third-party contracting when the third party is located in a different country
• C)is applicable only for services
• D)can improve operational flexibility

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Definitions:

Pareto Efficient

A condition in which no individual's situation can be improved without worsening the situation of another individual.

Public Good

A product or service that is provided without profit to all members of a society, either by the government or a private individual or organization.

Private Good

A product or service that is consumed by an individual and cannot be used or consumed by others once it is purchased.

Pareto Optimal

Pareto optimal describes a state in an economic system where it’s impossible to make any one individual better off without making at least one individual worse off, indicating an efficiency in resource allocation.