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 scenario?
Select one:
a. Trade restrictions result in loss of jobs.
b. Trade re-allocates jobs across industries.
c. Trade results in a misallocation of resources.
d. Unemployment is a bad thing.

Answer 1

Answer:

b. Trade re-allocates jobs across industries.

Explanation:

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.