5
lesson pretestMultiple Choice

Pretest

Question 5 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY

Why might developed economies want to outsource manufacturing and other jobs to developing economies?

Answer
A
Developed economies can find more inexpensive labor in developing economies.
B
Developed economies are responsible for helping developing economies progress.
C
Developing economies produce higher-quality goods, so it makes sense to outsource.
D
Developed economies focus only on service, not manufacturing, so they must outsource.

Explanation

Companies in developed economies may outsource work to developing economies because labor often costs less there. Lower labor costs can reduce the expense of producing goods or providing services. This makes “Developed economies can find more inexpensive labor in developing economies” the best answer; outsourcing is not required simply because an economy focuses on services, nor is it mainly about helping other countries or guaranteed higher quality.

AI-written and checked against the verified answer.

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