One Reason Some Manufacturing Companies Began Moving Production to China

Multiple Choice

One reason some manufacturing companies began moving production to China in the early 2000s was due to lower wages that could be paid to Chinese workers.Moving manufacturing to China to take advantage of lower wages so goods could be produced at a lower cost than if produced in 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.