4
QuizMultiple Choice

Trade Agreements — Unit test

Question 4 • * HSA 26-27 Economics

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

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

Explanation

A factory owner may move production to Pakistan if the total cost of making shirts there is lower. Lower production costs can make the shirts more profitable, so choice A, “it is less expensive to make shirts there,” is correct. The other choices do not explain a cost-saving reason to manufacture abroad.

AI-written and checked against the verified answer.

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