The Biden administration's "Buy American" agenda proposes to increase the federal government's purchase of American- made goods, and in doing so, get manufacturers to return production from overseas back to the United States. Assuming that executives at these manufacturing firms use all available information when making the decision of whether or not to move production back to the United States, including any costs that would be involved in making these moves, exemplifies which key economic idea? A) People are rational. B) People respond to economic incentives. C) Optimal decisions are made at the margin. D The market system relies on the principle of voluntary exchange.

The Biden administration's "Buy American" agenda proposes to increase the federal government's purchase of American- made goods, and in doing so, get manufacturers to return production from overseas back to the United States. Assuming that executives at these manufacturing firms use all available information when making the decision of whether or not to move production back to the United States, including any costs that would be involved in making these moves, exemplifies which key economic idea? A) People are rational. B) People respond to economic incentives. C) Optimal decisions are made at the margin. D The market system relies on the principle of voluntary exchange.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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