Question

Call centers offering technical support for American products have been moved to India to take advantage of lower labor costs. This is an example of:

Answer 1

Answer: Production efficiency  

Explanation: In simple words, Production efficiency is process of producing a good or service at minimum cost. It is a situation when more unit of output of a commodity could not be produced without sacrificing any additional unit of some other resource.

The outsourcing for technical support from america, will lead to lowering of cost in operation of US companies. Thus, they can produce more without giving up additional units of capital.

Hence from the above we can conclude that this is an example of production efficiency.