Question 1

If the United States offshores high­skilled jobs:

Accepted Answer

Offshoring high-skilled jobs can lead to lower costs for companies and potentially increase competitiveness. While there may be job losses in the short term, the overall gains for the economy can outweigh those losses. Additionally, offshoring can lead to increased investment and economic growth in the foreign country. The impact on wages for high-skilled workers in the United States may be mixed, as it could lead to increased competition for those jobs, but it could also lead to higher wages if companies are incentivized to keep those jobs in the country.

Question 2

The United States has seen an increase in offshoring of
Service jobs because:

Accepted Answer

The main reason for offshoring service jobs from the US is to cut costs by importing these activities to countries where labor and other costs are lower. This allows businesses to operate at a lower cost and increase their profits. The decision to offshore is typically based on factors that include labor costs, infrastructure, tax incentives, ease of doing business, and access to markets. While consumer demand and trade agreements can play a role, cost savings are typically the driving factor.

Question 3

An isoquant describes:

Accepted Answer

An isoquant is a curve that represents all the possible combinations of inputs that produce a constant level of output. It shows the different ways of producing the same level of output by changing the mix of inputs. Therefore, the correct option is (C) combinations of inputs that produce a constant level of output.

Question 4

The U.S.terms of trade for merchandise goods
_________ from 1994 to 2008.

Accepted Answer

The U.S. terms of trade for merchandise goods improved from 1994 to 2008, indicating that the country could exchange its exports for more imports over time, reflecting an improvement in trade conditions.

Question 5

Figure: A Firm's Production With and Without
Offshoring II 
(Figure: A Firm's Production With and Without Offshoring
II. If the world price of components falls, it is likely that:

Accepted Answer

The answer of Figure: A Firm's Production With and Without
Offshoring...

Question 6

A country's terms of trade is:

Accepted Answer

A country's terms of trade refer to the price of its exports relative to its imports. In other words, it is the ratio of the price of a country's exports to the price of its imports. A higher terms of trade means that a country can purchase more imports for the same amount of exports, while a lower terms of trade means that a country has to export more to be able to afford the same level of imports. The terms of trade reflect the competitiveness of a country's exports relative to its imports, and changes in the terms of trade can have significant effects on a country's economy.

Question 7

Samuelson's example is an analysis of a fall in export
Prices, which _______________ the terms of trade,
And _______________ export volume.Samuelson's
Point is that a country is _______________ in the
Absence of trade.

Accepted Answer

A fall in export prices worsens the terms of trade and reduces export volume. Samuelson's point is that a country is better off in the absence of trade when the terms of trade worsen.

Question 8

With the importation (offshoring) of components and
Exportation of R&D, what happens to total production in
The economy?

Accepted Answer

Offshoring components and exporting R&D can lead to an increase in total production in the economy, as it allows for more efficient production using the same amount of labor. This is because offshoring often allows companies to access cheaper labor and resources in other countries, while exporting R&D can lead to the development of new technologies and processes that can improve efficiency. Higher wages are not necessarily a result of offshoring and exporting R&D, and productivity and efficiency do not necessarily decline.

Question 9

The economist Paul Samuelson analyzed a scenario in
Which R&D production suffers from foreign competition,
Thus lowering its price.Samuelson notes that foreign
Competition in R&D will generally ____ the terms of
Trade and national welfare if the nation exports R&D.

Accepted Answer

According to Samuelson, foreign competition in R&D will generally lower the terms of trade and national welfare if the nation exports R&D. This is because foreign competition will lead to a decrease in the price of R&D, which will lower the income earned by the country exporting it, and the welfare of the exporting nation.

Question 10

Offshoring of radiology services to countries such as
India, Australia, and Israel is:

Accepted Answer

The offshoring of radiology services is not going to impact the market for radiologists in the United States because the skill required for radiology is learned from years of experience, and not just a matter of wage differences or lower costs in other countries. As such, skilled technicians and radiologists in the US should not be impacted negatively by offshoring.

Question 11

Combining offshoring of services and material inputs
May explain as much as ____ of the ________ in U.S.
Productivity from 1992 to 2000.

Accepted Answer

Research has shown that combining offshoring of services and material inputs may explain as much as 20% of the increase in U.S. productivity from 1992 to 2000. This is because outsourcing allows companies to access cheaper inputs and focus on core competencies, leading to increased efficiency and productivity.

Question 12

As the home nation increases production of R&D by
Devoting more skilled resources, its productivity rises
And its relative price rises.This situation creates:

Accepted Answer

The answer of As the home nation increases production of...

Question 13

Service activities that lend themselves well to
Offshoring are ones:

Accepted Answer

Activities that have well-defined guidelines, rules, and procedures can easily be offshored as workers in other countries can be trained to follow specific processes. This makes it easier to standardize the quality of work and reduce the need for direct supervision.

Question 14

Service offshoring in the United States from 1992 to
2000 is estimated to have had a _______________
Effect on U.S.productivity and accounted for
_______________ of the total increase in productivity.

Accepted Answer

Service offshoring in the United States from 1992 to 2000 is estimated to have had a positive effect on U.S. productivity and accounted for 11% to 13% of the total increase in productivity.

Question 15

Figure: A Firm's Production With and Without
Offshoring II 
(Figure: A Firm's Production With and Without Offshoring
II. If the home country offshores components to a foreign
Country and then exports R&D to the foreign country and
Imports components from the foreign country, then:

Accepted Answer

The offshoring results in an increase in output at lower prices, which benefits the firm and its consumers. The exchange is beneficial for the home country because it can produce more efficiently by offshoring and importing components from the foreign country.

Question 16

A country will find offshoring attractive when:

Accepted Answer

Offshoring becomes attractive when the international relative price of components is less than the home price of components since it allows for cost savings in production. Therefore, choice B is the correct answer. Choices A, C, and D do not accurately reflect the conditions under which offshoring would be attractive.

Question 17

High­skill U.S.medical workers worry over losing their
Jobs to foreign competition.Although some of these
Activities can be offshored, the text makes which point
About medical offshoring?

Accepted Answer

The text states that "many patient-care activities must be done on-site," indicating that the scope for offshoring in the medical field is limited. Option A is incorrect because the text does not make a statement regarding the quality of training of foreign medical workers. Option C is also incorrect as there is no such statement made in the text regarding reading X-rays or processing lab work by foreign medical workers. Option D is incorrect as it includes all options, which is not the case.

Question 18

Economists note that one explanation of the seeming
Paradox of offshoring high­skill jobs could be that an
Offshoring model assumption has been violated.Which
Of the following assumptions has been violated?

Accepted Answer

The assumption that capital is spread evenly and is available to all offshored activities may be violated, as disparities in capital availability can affect the success of offshoring high-skill jobs.

Question 19

Which of the following statements does NOT apply to
"nighthawk" firms?

Accepted Answer

The statement "In most cases, they compete for daytime jobs in the home country" does not apply to "nighthawk" firms. These firms typically operate during non-traditional hours and provide services to other firms during their closed hours. They often specialize in tasks that require attention during off-hours, such as cleaning, security, or IT maintenance. Therefore, they do not compete for daytime jobs in the home country.

Question 20

Figure: A Firm's Production With and Without
Offshoring II 
(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:

Accepted Answer

The answer of Figure: A Firm's Production With and Without
Offshoring...

Quiz 7: Import Tariffs and Quotas Under Perfect Competition

If the United States offshores highskilled jobs:

The United States has seen an increase in offshoring of Service jobs because:

An isoquant describes:

The U.S.terms of trade for merchandise goods _________ from 1994 to 2008.

Figure: A Firm's Production With and Without Offshoring II (Figure: A Firm's Production With and Without Offshoring II. If the world price of components falls, it is likely that:

A country's terms of trade is:

Samuelson's example is an analysis of a fall in export Prices, which _______ the terms of trade, And _ export volume.Samuelson's Point is that a country is _________ in the Absence of trade.

With the importation (offshoring) of components and Exportation of R&D, what happens to total production in The economy?

The economist Paul Samuelson analyzed a scenario in Which R&D production suffers from foreign competition, Thus lowering its price.Samuelson notes that foreign Competition in R&D will generally ____ the terms of Trade and national welfare if the nation exports R&D.

Offshoring of radiology services to countries such as India, Australia, and Israel is:

Combining offshoring of services and material inputs May explain as much as of the ____ in U.S. Productivity from 1992 to 2000.

As the home nation increases production of R&D by Devoting more skilled resources, its productivity rises And its relative price rises.This situation creates:

Service activities that lend themselves well to Offshoring are ones:

Service offshoring in the United States from 1992 to 2000 is estimated to have had a _ Effect on U.S.productivity and accounted for _ of the total increase in productivity.

Figure: A Firm's Production With and Without Offshoring II (Figure: A Firm's Production With and Without Offshoring II. If the home country offshores components to a foreign Country and then exports R&D to the foreign country and Imports components from the foreign country, then:

A country will find offshoring attractive when:

Highskill U.S.medical workers worry over losing their Jobs to foreign competition.Although some of these Activities can be offshored, the text makes which point About medical offshoring?

Economists note that one explanation of the seeming Paradox of offshoring highskill jobs could be that an Offshoring model assumption has been violated.Which Of the following assumptions has been violated?

Which of the following statements does NOT apply to "nighthawk" firms?

Figure: A Firm's Production With and Without Offshoring II (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:

Quiz 7: Import Tariffs and Quotas Under Perfect Competition

If the United States offshores high­skilled jobs:

The United States has seen an increase in offshoring of Service jobs because:

An isoquant describes:

The U.S.terms of trade for merchandise goods _________ from 1994 to 2008.

Figure: A Firm's Production With and Without Offshoring II (Figure: A Firm's Production With and Without Offshoring II. If the world price of components falls, it is likely that:

A country's terms of trade is:

Samuelson's example is an analysis of a fall in export Prices, which _______________ the terms of trade, And _______________ export volume.Samuelson's Point is that a country is _______________ in the Absence of trade.

With the importation (offshoring) of components and Exportation of R&D, what happens to total production in The economy?

The economist Paul Samuelson analyzed a scenario in Which R&D production suffers from foreign competition, Thus lowering its price.Samuelson notes that foreign Competition in R&D will generally ____ the terms of Trade and national welfare if the nation exports R&D.

Offshoring of radiology services to countries such as India, Australia, and Israel is:

Combining offshoring of services and material inputs May explain as much as ____ of the ________ in U.S. Productivity from 1992 to 2000.

As the home nation increases production of R&D by Devoting more skilled resources, its productivity rises And its relative price rises.This situation creates:

Service activities that lend themselves well to Offshoring are ones:

Service offshoring in the United States from 1992 to 2000 is estimated to have had a _______________ Effect on U.S.productivity and accounted for _______________ of the total increase in productivity.

Figure: A Firm's Production With and Without Offshoring II (Figure: A Firm's Production With and Without Offshoring II. If the home country offshores components to a foreign Country and then exports R&D to the foreign country and Imports components from the foreign country, then:

A country will find offshoring attractive when:

High­skill U.S.medical workers worry over losing their Jobs to foreign competition.Although some of these Activities can be offshored, the text makes which point About medical offshoring?

Economists note that one explanation of the seeming Paradox of offshoring high­skill jobs could be that an Offshoring model assumption has been violated.Which Of the following assumptions has been violated?

Which of the following statements does NOT apply to "nighthawk" firms?

Figure: A Firm's Production With and Without Offshoring II (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:

If the United States offshores highskilled jobs:

Samuelson's example is an analysis of a fall in export Prices, which _______ the terms of trade, And _ export volume.Samuelson's Point is that a country is _________ in the Absence of trade.

Combining offshoring of services and material inputs May explain as much as of the ____ in U.S. Productivity from 1992 to 2000.

Service offshoring in the United States from 1992 to 2000 is estimated to have had a _ Effect on U.S.productivity and accounted for _ of the total increase in productivity.

Highskill U.S.medical workers worry over losing their Jobs to foreign competition.Although some of these Activities can be offshored, the text makes which point About medical offshoring?

Economists note that one explanation of the seeming Paradox of offshoring highskill jobs could be that an Offshoring model assumption has been violated.Which Of the following assumptions has been violated?