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

question 68

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

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