Economic theory states that losing comparative advantage in one good means creating a comparative advantage in another.This suggests that:
A)those who experience the transition may find it difficult in the short run.
B)it can be seen as a success in the long run.
C)outsourcing can be good overall for a society.
D)All of these statements are true.

Question

Quizplus · Accepted Answer

Losing comparative advantage in one good may lead to short-term challenges and difficulties for those who experience the transition, but in the long run, it can be seen as a success as it creates a comparative advantage in another good. This suggests that outsourcing can be good overall for a society. Therefore, all of the given statements are true.

Economic Theory States That Losing Comparative Advantage in One Good