Suppose Wages for Construction Workers Are Higher in Hawaii Than

question 115

Multiple Choice

Suppose wages for construction workers are higher in Hawaii than in Florida. This could be because the

• A)moving costs between Florida and Hawaii are so high that construction workers in Florida do not relocate to Hawaii.
• B)product price of what construction workers in Hawaii produce is higher than the product price of what construction workers in Florida produce and the moving costs between Florida and Hawaii are zero.
• C)moving costs between Florida and Hawaii are zero.
• D)marginal physical product of construction workers in Hawaii is higher than the marginal physical product of construction workers in Florida and the moving costs between Florida and Hawaii are zero.
• E)b and d

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Definitions:

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