Economic theory states that losing comparative advantage in one good means creating a comparative advantage in another. This suggests that:
A. those who experience the transition may find it difficult in the short run.
B. in the long run people may not like it, but no one will complain in the short run.
C. outsourcing will always be good for every member of a society.
D. it can be seen as a success in the short run.
Answer: A
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As a percentage of GDP, exports are greater than imports for which of the following countries?
A) France B) China C) the United Kingdom D) the United States
Explain why the optimal amount of pollution is often not zero
What will be an ideal response?
Microeconomic topics do not usually include: a. how wages are determined in the labor market
b. the magnitude of national income. c. how firms choose output to maximize profits. d. how consumers maximize utility subject to a budget constraint.
If the demand for good A is more elastic than the demand for good B, a small increase in supply in both markets will cause
a. a much greater increase in the equilibrium quantity of good A than for good B b. a much greater increase in the equilibrium quantity of good B than for good A c. the equilibrium quantity will decrease by the same amount in both markets d. only the equilibrium quantity of good B will decrease e. only the equilibrium quantity of good A will decrease