4
lesson pretestMultiple Choice

Pretest

Question 4 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY

Which is the best example of outsourcing?

Answer
A
A US shoe company opens a factory in China and hires Chinese workers to make shoes.
B
A Chinese shoe company opens a factory in China and hires Chinese workers to make shoes.
C
A US shoe company opens a factory in the US and hires US workers to make shoes.
D
A US shoe company opens a factory in the US and hires Chinese workers to make shoes.

Explanation

Outsourcing means having work done outside a company’s home country, often to reduce costs. In D, a US shoe company makes its shoes in China using Chinese workers, so it has moved production abroad. The other choices either keep production in the US or describe a Chinese company producing in its own country.

AI-written and checked against the verified answer.

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