One Reason Some Manufacturing Companies Have Moved Production from China

Multiple Choice

One reason some manufacturing companies have moved production from China to other overseas locations is because of the tariffs implemented by the Trump administration on Chinese imports. Company managers using all available information, including the tariffs on Chinese imports, when making the decision to move production out of China and into other foreign nations 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.