In Theory, Some People Might Lose in the Short Run

question 107

Multiple Choice

In theory, some people might lose in the short run from outsourcing, but in the long run, all should benefit. Which option demonstrates that this theory might not be true?

• A) Lower labor costs lead to lower prices, so more foreigners can buy imports.
• B) Income earned at outsourced jobs allows foreign workers to purchase imports.
• C) Lower prices allow more consumers to buy the good domestically.
• D) Outsourcing stimulates competition.
• E) Inadequate transition programs hinder the ability of domestic workers, who lost their jobs to outsourcing, to obtain new jobs.

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Definitions:

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The act of representing an object, concept, or action with a symbol or a set of symbols, especially in the context of mathematics or logic.

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Individuals who engage in the sport or activity of jumping from an aircraft and descending to the ground with the aid of a parachute.

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Entertainment events designed to excite or scare the audience through spectacles of danger or daring.

Experience

The knowledge or practical wisdom gained from direct participation in events or activities.