The Figure Given Below Represents the Effects in the Labor

question 22

Multiple Choice

The figure given below represents the effects in the labor markets due to migration. Here the world has been divided into a high-income "North" (left panel) and a low-income "South" (right panel) . D_n and S_n are the labor demand and the labor supply curves in North. D_s and (S_r + S_mig) are the labor demand and pre-migration labor supply curves in South. S_r is the post-migration labor supply curve in South. The value c is the cost of migrating. When migration is not allowed, workers in North earn _____ per hour and workers in South earn _____ per hour.

• A)$6.75; $4.25
• B)$8.00; $4.25
• C)$6.75; $3.00
• D)$8.00; $3.00

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