26
practice examMultiple Choice

Practice Exam

Question 26 • Economics

A factory owner might decide to manufacture shirts in Pakistan instead of the United States because

Answer
A
it is less expensive to make shirts there.
B
workers in Pakistan are more skilled.
C
workers in Pakistan work fewer hours.
D
it is worth paying more for foreign labor.

Explanation

A factory owner may choose to manufacture shirts in Pakistan if producing them there costs less than producing them in the United States. Lower production costs can make the shirts more profitable. So the correct choice is “it is less expensive to make shirts there.”

AI-written and checked against the verified answer.

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