With Labor Migration, the Amount of Change in the Destination

question 29

Multiple Choice

With labor migration, the amount of change in the destination country's wage rates depends on the

• A) original supply of labor in that country.
• B) original supply of labor in the country of origin.
• C) elasticity of demand for labor in that country.
• D) elasticity of demand for labor in the country of origin.

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Definitions:

Differential Cost

The difference in cost between two alternative decisions or changes in output levels.

Sunk Cost

Sunk cost represents money already spent and permanently lost, which cannot be recovered and should not influence future financial decisions.

Differential Cost

Refers to the difference in total cost that will result from selecting one option over another in decision-making situations.

Differential Revenue

The difference in revenue generated under two different scenarios or courses of action.