Which of the Following Statements Describes the Long-Run Effects of Global

question 187

Multiple Choice

Which of the following statements describes the long-run effects of global outsourcing?

• A) Wages for U.S. workers will decrease but wages in other countries will increase.
• B) Wages in all countries will remain the same as before the outsourcing.
• C) Wages and employment will increase globally.
• D) Wages will increase globally and employment will stay the same.

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Definitions:

Saving

The portion of income that is not spent on consumption but is kept aside for future use, investments, or emergencies.

Disposable Income

Income remaining after deduction of taxes and social security charges, available to be spent or saved as one wishes.

Consumption Spending

The total money spent by households in an economy on goods and services.