Because Resources and Wages Are Cheaper in Many Other Nations

question 44

Multiple Choice

Because resources and wages are cheaper in many other nations, U.S. corporations are shifting more and more of their total assets outside of the United States. As of 2009, _____ of the top 15 multinational companies were U.S. based companies.

• A) all
• B) three
• C) six
• D) 12

Analyze how changes in a firm's output level affect its profitability in a competitive market.

Recognize the implications of a firm producing at a level where marginal cost exceeds or is less than marginal revenue.

Understand the impact of market conditions on a firm's decision to adjust output rather than price in a competitive price-taker market.

Understand the concept of a price-taker firm in competitive markets.

---

Definitions:

Experience-dependent Development

The process by which individual experiences, such as learning, directly influence and shape the development of neural connections and behavior.

Vocal Cords

The folds of tissue in the larynx responsible for producing sound, including speech.

Habituation

The psychological process of gradually becoming accustomed to a stimulus after repeated exposure, leading to a decrease in response.

Classical Conditioning

A learning process in which an innate response to a potent stimulus comes to be elicited in response to a previously neutral stimulus.