Jobs lost to outsourcing can be partially offset by jobs gained from
A) higher production costs.
B) higher opportunity costs.
C) greater trade imbalances.
D) increased output from another industry.

Question

Quizplus · Accepted Answer

Outsourcing may result in job loss in one industry, but it can also lead to increased demand and output in another industry. As a result, jobs may be gained in that industry to offset those lost to outsourcing. This is known as job shifting or job displacement rather than job creation, but it can still partially offset the negative effects of outsourcing. Options A, B, and C are incorrect as they do not provide a solution to the job loss resulting from outsourcing.

Jobs Lost to Outsourcing Can Be Partially Offset by Jobs