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It Is Not Necessarily the Case That Canadian Workers Are

Question 30

Multiple Choice

It is not necessarily the case that Canadian workers are doomed to hold "bad" jobs as all of the "good" jobs are outsourced to countries with cheap labour. Which of the following related statements is false?


A) Canadian employers always have an incentive to seek out the lowest-cost labour and send the work there.
B) Outsourcing typically lowers the costs of production, which can lower the prices that Canadian consumers pay for certain goods, thereby permitting an increase in spending on other goods.
C) It is not clear that Canadian and foreign labour are substitutes in production.
D) One has to consider the unit labour costs in the two countries.
E) While Canadian labour is often expensive compared to foreign labour, it is often much more productive.

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