Consider the Following Statement: "Canadians on Average Are Worse Off

Multiple Choice

Consider the following statement: "Canadians on average are worse off when some manufacturing jobs migrate from Canada to low-wage countries in Central America." This statement is ________ because ________.

A) correct; the loss of manufacturing jobs leads to permanent income losses in Canada
B) correct; Canadian firms cannot compete with production in low-wage countries
C) incorrect; the permanent gains to consumers from lower prices outweigh the temporary losses to the displaced manufacturing workers
D) incorrect; low-wage countries do not produce manufactured goods
E) incorrect; there are no Canadians made worse off by such an event