In Theory,some People Might Lose in the Short Run from Outsourcing,but

question 110

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.

---

Definitions:

Department Store

A large retail establishment that sells a wide range of consumer goods across different departments or categories.

Binomial Distribution

A probability distribution that describes the outcome of a fixed number of trials in experiments that have two possible outcomes (success or failure) and a constant probability of success.

Random Sample

A sample drawn in such a way that each member of the population has an equal chance of being selected.

Female Customers

A specific segment of the market made up of women or those identifying as female who purchase goods or services.