If Capital Is Specific to Manufacturing and Land Is

question 75

Multiple Choice

If capital is specific to manufacturing and land is
Specific to agriculture, then migration of labor from
Low­income to high­income countries will cause:

• A)the wage to rise in the high­income country and the wage to fall in the low­income country.
• B)the wage to fall in the high­income country and the wage to rise in the low­income country.
• C)the wage to rise in both the high­income and low­ income countries.
• D)the wage to fall in both the high­income and low­ income countries.