Consider the Following Statement: "Canadians on Average Are Worse Off

question 11

Multiple Choice

Consider the following statement: "Canadians on average are worse off when some manufacturing jobs migrate from Canada to low-wage countries in Central America." This statement is ________ because ________.

• A)correct; the loss of manufacturing jobs leads to permanent income losses in Canada
• B)correct; Canadian firms cannot compete with production in low-wage countries
• C)incorrect; the permanent gains to consumers from lower prices outweigh the temporary losses to the displaced manufacturing workers
• D)incorrect; low-wage countries do not produce manufactured goods
• E)incorrect; there are no Canadians made worse off by such an event

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Definitions:

Indifference Curves

Graphs representing different combinations of goods that give a consumer equal levels of satisfaction, thereby indicating their preferences.

Bundle

A combination of different goods or services that are sold together as a single package.

Indifference Curves

Graphical representations in microeconomics that show combinations of two goods among which a consumer is indifferent, meaning they have no preference for one combination over the other.

Bundle

A combination of different products or services grouped together, often for promotional or pricing strategies.