(Figure: a Firm's Production with and Without Offshoring II) If

question 71

Multiple Choice

(Figure: A Firm's Production With and Without Offshoring II) If the price of R&D decreases, then it is likely that the home country:

• A) could see a decline in the amount of output produced.
• B) will see a loss in comparative advantage in R&D.
• C) could see a decline in the amount of output produced and a loss in comparative advantage in R&D.
• D) could see an increase in the amount of output produced.

---

Definitions:

Availability Heuristic

A cognitive shortcut based on the first examples that spring to mind when considering a particular subject, idea, strategy, or choice.

Gun Violence

Refers to the use of firearms to commit violence or harm, including homicides, suicides, and accidental shootings.

Probability

A measure of the likelihood of a specific event or outcome to occur, expressed as a number between 0 and 1.

Mental Accounting

A concept in behavioral finance where individuals categorize and evaluate economic outcomes by assigning them to specific accounts mentally.