One reason some manufacturing companies began moving production to China in the early 2000s was due to lower wages that could be paid to Chinese workers.Moving manufacturing to China to take advantage of lower wages so goods could be produced at a lower cost than if produced in the United States exemplifies which key economic idea?

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Quizplus · Accepted Answer

This situation exemplifies the key economic idea that people respond to economic incentives. Companies moved production to China to take advantage of lower wages, which incentivized them to produce goods at a lower cost than if produced in the United States.

One Reason Some Manufacturing Companies Began Moving Production to China