Suppose a U

question 61

Multiple Choice

Suppose a U.S. computer company outsources its technical-support services to India. This will cause

• A) the demand for labor in the United States to fall, lowering U.S. wage rates, and the demand for labor in India to increase, increasing Indian wage rates.
• B) the demand for labor in the United States to increase, lowering U.S. wage rates, and the demand for labor in India to fall, increasing Indian wage rates.
• C) the demand for labor in the United States to fall, lowering U.S. wage rates, and the demand for labor in India to fall, decreasing Indian wage rates.
• D) the demand for labor in the United States to increase, increasing U.S. wage rates, and the demand for labor in India to fall, decreasing Indian wage rates.

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Definitions:

Unemployment

A situation where individuals who are capable of working and willing to work cannot find employment.

Technological Change

The development and application of new technologies and processes, improving efficiency or creating new products and services.

Specialized Skills

Specific abilities and expertise developed through training or experience, valuable in particular jobs or tasks.

Long-Term Hardships

Prolonged periods of difficulty or suffering that individuals or communities face, often due to economic downturns or other adverse conditions.