Assuming Migration Is Unimpeded and Costless, Which of the Following

question 71

Multiple Choice

Assuming migration is unimpeded and costless, which of the following statements is most accurate about the effect of immigration on wages in both the origin and destination nations?

• A) Wages will rise in the origin nation and fall in the destination nation, and overall wage income must rise.
• B) Wages will rise in both nations, and overall wage income must rise.
• C) Wages will rise in the origin nation and fall in the destination nation, and the wage changes must cancel each other, resulting in no net change in overall wage income.
• D) Wages will rise in the origin nation and fall in the destination nation, but the effect on overall wage income depends on the elasticities of labor demand.

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Definitions:

Total Revenue

The overall income generated by a business from all its sales activities before any costs or expenses are deducted.

Total Cost

The complete cost of production, including both fixed and variable costs, or the entire expense incurred in a transaction.

Price-Setting Process

The approach or methodology used by businesses to determine the selling price of their products or services.

Market Share

The percentage of an industry's sales that a particular company controls, indicating its size relative to its competitors.