In Economic Development, "Brain Drain" Refers to the Tendency of a Developing

question 39

Multiple Choice

In economic development, "brain drain" refers to the tendency of a developing country's most skilled workers leaving to work in a wealthy country. Why can skilled foreign workers from poor countries make so much more money in wealthy countries?

• A) because there are many skilled workers in poor countries
• B) because the demand for skilled workers is higher in wealthy countries
• C) because the marginal product of labor of skilled workers is high in poor countries
• D) because the foreign workers must be compensated since employers know the worker will want to send a large chunk of her earnings to her family

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