Ask Question
17 June, 07:00

What are the short-run economic effects when u. s. firms substitute labor outside of the u. s. for labor inside the u. s.?

a. the demand curve for labor in the u. s. increases, and the demand curve in the foreign country will increase.

b. the demand curve for labor in the u. s. decreases, and the demand curve in the foreign country will increase.

c. the demand curve for labor in the u. s. decreases, and the demand curve in the foreign country will decrease.

d. the demand curve for labor in the u. s. increases, and the demand curve in the foreign country will decrease?

+1
Answers (1)
  1. 17 June, 07:13
    0
    Correct option is B

    Explanation:

    the demand curve for labor in the u. s. decreases, and the demand curve in the foreign country will increase.

    In other words, the wage rate in the U. S country will reduce as a result of low labor demand. While, the wage rate in the Foreign country will increase as a result of high labor demand.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “What are the short-run economic effects when u. s. firms substitute labor outside of the u. s. for labor inside the u. s.? a. the demand ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers