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Consider the Labor Situation in Countries I and II in a Two-Country

question 5

Multiple Choice

Consider the labor situation in countries I and II in a two-country world with the marginal Physical product schedules MPPLI (= demand for labor schedule DI) for country I and Marginal physical product schedule MPPLII (= demand for labor schedule DII) for country II shown in the graph below (where the vertical axes also represent real wages) :
Consider the labor situation in countries I and II in a two-country world with the marginal Physical product schedules MPPL<sub>I</sub> (= demand for labor schedule D<sub>I</sub>)  for country I and Marginal physical product schedule MPPL<sub>II</sub> (= demand for labor schedule D<sub>II</sub>)  for country II shown in the graph below (where the vertical axes also represent real wages) :   Without any migration of labor between the two countries, the labor force is 0L<sub>1</sub> in country I and (in the leftward direction)  0'L<sub>1</sub> in country II. If labor is now allowed to flow freely between the two countries, labor would migrate __________. As a result of the migration, world output would increase by the amount of triangle __________. A)  from country I to country II; CBA B)  from country I to country II; FBA C)  from country II to country I; CFA D)  from country II to country I; CBA
Without any migration of labor between the two countries, the labor force is 0L1 in country I and (in the leftward direction) 0'L1 in country II. If labor is now allowed to flow freely between the two countries, labor would migrate __________. As a result of the migration, world output would increase by the amount of triangle __________.

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Definitions:

Hyperoxygenate

To supply or saturate something, especially the body or part of the body, with an excessive amount of oxygen.

Airway

The part of the respiratory system through which air flows, beginning at the nose and mouth and continuing through the lungs.

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Protective gear that covers the face, often used to shield the wearer from bodily fluids or hazardous materials.

Oral Hygiene

The practice of keeping the mouth clean to prevent dental problems such as cavities, gingivitis, and bad breath, involving regular brushing and flossing.

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