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Peregrinus Peregrinus
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6 years ago
When companies outsource jobs to foreign countries, the price of the outsourced inputs is effectively reduced. The cross-wage effect on the demand for other workers will be positive
A) if the substitution effect dominates the scale effect.
B) only if the substitution effect is positive.
C) if the scale effect dominates the substitution effect.
D) only if the reduction in prices increases the real wage of all workers.
Textbook 
Modern Labor Economics: Theory and Public Policy

Modern Labor Economics: Theory and Public Policy


Edition: 12th
Authors:
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alanialani
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6 years ago
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Peregrinus Author
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6 years ago
Thank you, thank you, thank you!
kobbhy
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I appreciate what you did here, answered it right Smiling Face with Open Mouth
Evolution
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You make an excellent tutor!
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