Which of the Following Is a Major Source of the Improvement

question 70

Multiple Choice

Which of the following is a major source of the improvement in the capabilities of a foreign site?

• A) Increasing abundance of advanced factors of production in the nation where the factory is located
• B) Changes in the labor costs associated with the foreign site
• C) Fluctuations in the quality of the product coming out of the foreign site
• D) Sudden changes in the currency exchanges rates with the nation in which the factory is located

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Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that consumers are willing and able to purchase at various prices.

Economic Profit

The variance between an enterprise's aggregate income and total outlays, taking into account both clear and assumed costs.

Short-Run Equilibrium

The state in a market where supply equals demand within a limited time frame, before any long-term adjustments take place.

Long-Run Equilibrium

A state in which all factors of production and outputs are optimal, allowing for all economic agents to have no incentive to change their behavior.