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 be FALSE?
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.

Question

Quizplus · Accepted Answer

This option suggests that domestic workers who lost their jobs to outsourcing might have difficulty finding new jobs, which implies that they may not benefit from outsourcing in the long run. This contradicts the theory that all should benefit from outsourcing in the long run.

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