Multiple Choice
Which of the following is a strategy Houston has implemented to combat increasing ozone pollution?
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7. Externalities
Externalities: Social Benefits and Social Costs
Multiple Choice
Which of the following is one way U.S. workers are affected when jobs are outsourced to less-developed countries?
A
They may experience higher unemployment due to reduced domestic job opportunities.
B
They benefit from increased job security in the manufacturing sector.
C
They are guaranteed higher wages as a result of outsourcing.
D
They automatically receive government subsidies to offset job losses.
Verified step by step guidance1
Step 1: Understand the concept of outsourcing in microeconomics. Outsourcing occurs when companies relocate production or services to other countries, often to reduce costs by taking advantage of cheaper labor in less-developed countries.
Step 2: Analyze the impact of outsourcing on U.S. workers. When jobs move abroad, domestic job opportunities in certain sectors, such as manufacturing, may decrease.
Step 3: Recognize that reduced domestic job opportunities can lead to higher unemployment among U.S. workers in affected industries, as fewer jobs are available locally.
Step 4: Evaluate the incorrect options: increased job security, guaranteed higher wages, and automatic government subsidies are not typical direct effects of outsourcing on workers.
Step 5: Conclude that the most accurate effect of outsourcing on U.S. workers is the potential for higher unemployment due to reduced domestic job opportunities.
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