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.

Question

Quizplus · Accepted Answer

The option E suggests that inadequate transition programs hinder the ability of domestic workers, who lost their jobs to outsourcing, to obtain new jobs. This implies that outsourcing may not necessarily benefit all individuals in the long run, especially those who lose their jobs due to outsourcing.

In Theory, Some People Might Lose in the Short Run