During the recent financial crisis many workers lost their jobs. Amy, for exampl

Question

During the recent financial crisis many workers lost their jobs. Amy, for example, lost her job as a pharmaceutical salesperson. After five months of unemployment she spent $6,000 on a class that taught her the skills she would need to sell medical devices. Today Amy makes 25%more than she did in pharmaceutical sales and enjoys her new job much more than her old job. Which of the following concepts best illustrates this scenaria? Select one: a. Trade restrictions result in loss of jobs. ob.Trade re-allocates jobs acrossindustries. C. Trade results in a misallocation of resources. d. Unemployment is a bad thing. Check

Explanation / Answer

Option (b) is correct. Trade reallocates jobs across industries. Earlier Amy was working as a pharmaceutical salesperson.Now she is selling medical devices in the same pharmaceutical industry, giving her higher pay and job satisfaction.

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