31.Why a large number of IT jobs being outsourced to : 1413877
31.Why are a large number of IT jobs being outsourced to China and India?
a.India and China experience large balance of payment deficits.
b.India and China are highly capital intensive economies.
c.India and China have abundant supply of cheap skilled labor.
d.India and China have abundant supply of unskilled labor.
e.India and China are rich in natural resources.
32.Which of the following is a major impact of offshoring?
a.Elimination of domestic jobs
b.Elimination of jobs in foreign countries
c.Creation of jobs in the domestic country
d.An increase in the cost of production of domestic firms
e.A reduction in the cost of production of foreign firms
33.A large number of U.S. firms send jobs to low-wage nations as it enables them to:
a.raise the price of their products.
b.reduce their cost of production.
c.get better quality products.
d.obtain diversified products.
e.politically dominate the economies where they are offshoring.
NARRBEGIN: Figure 15.4
The figure given below shows the demand curve in the U.S. and the cost curves in U.S. and India.
In the figure:
MC: Marginal cost curve
ATC: Average total cost curve
D: Demand curve in the U.S.
MR: Marginal revenue curve in the U.S.
34.According to Figure 15.4, the price and quantity of the good if produced by U.S. would be _____ and _____ respectively.
35.In Figure 15.4, the price and quantity of the good if produced by India would be _____ and _____ respectively.
36.According to Figure 15.4, one of the possible outcomes of such offshoring is that:
a.the price of the good in question rises in the U.S. market.
b.the demand for Indian labor declines.
c.the demand for U.S. workers increase.
d.the price of the good in question rises in the Indian market.
e.the Indian workers replace the U.S. workers.
37.Why has the inequality of income become greater?
a.The demand for skilled workers has declined.
b.The demand for skilled workers has remained constant and the demand for unskilled workers has declined.
c.The government policies went against the unskilled workers.
d.The demand for skilled workers has increased and the demand for unskilled workers has not kept pace.
e.The demand for unskilled workers increased as they could be hired for lower wages.
38.The U.S. government has time and again raised the minimum wage to:
a.ensure that the skilled workers make a decent living.
b.increase the elasticity of labor supply.
c.earn greater tax revenue.
d.ensure that the unskilled workers make a decent living.
e.safeguard the interests of the employers.
39.Minimum wage legislation by the government would:
a.create labor shortage.
b.create labor surplus.
c.not affect the labor market.
d.benefit the firms.
e.increase income inequality in the country.
40.The intention of a minimum wage is to:
a.keep the wage rate at par with the equilibrium wage.
b.keep the wage rate below the equilibrium wage.
c.raise the wage rate above the equilibrium wage.
d.keep the wage rate at par with the wage of the skilled workers.
e.make the wages of the skilled and unskilled workers equal.