One Reason Some Manufacturing Companies Have Moved Production from Overseas

Multiple Choice

One reason some manufacturing companies have moved production from overseas locations back to the United States is rising foreign labor costs.Assuming that managers at these companies used all available information, including the rising cost of foreign labor, when making the decision to move production back to the United States 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.