Suppose That Due to Flooding in Louisiana,100,000 Farmers Relocate from Louisiana

question 392

Multiple Choice

Suppose that due to flooding in Louisiana,100,000 farmers relocate from Louisiana to Texas.Assuming that land and labor are complements in a farming production function,what would happen to the wages earned by workers and the rents earned by landowners in Texas?

• A) Both wages and rents would increase.
• B) Both wages and rents would decrease.
• C) Wages would increase, and rents would decrease.
• D) Wages would decrease, and rents would increase.

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Definitions:

Critical Path

A continuity of necessary tasks in a project's agenda that have to be accomplished on time for the project to meet its proposed finalization date.

Pessimistic

An attitude or perspective that tends to see the worst aspect of things or believe that the worst will happen.

Probable

Likely to occur or be the case.

Optimistic

Having a positive outlook or expectation about the future or the success of something.