Symbols: Q = Number of Workers Demanded; W = Wage

question 239

Multiple Choice

Symbols: Q = number of workers demanded; W = wage rate; and VTP = value of the cumulative total product (output) of the particular number of workers. Assumptions: (1) The current wage in Zinnia is $20, and the current wage in Marigold is $12; (2) full employment exists in both countries.Refer to the given data, symbols, and assumptions. Migration of workers will

• A)increase the combined value of total product but reduce the wage in Zinnia.
• B)increase the combined value of total product but reduce the wage in Marigold.
• C)reduce the combined value of total product but increase the wage in Marigold.
• D)reduce the combined value of total product but increase the wage in Zinnia.

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Definitions:

Personal Fortune

A person's net worth comprised of assets, cash, and investments minus any liabilities.

Insurance

A contractual agreement where one party agrees to compensate another party for specific losses or damages in exchange for a premium.

Partnership

A business organization where two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Agreement.

Joint Activity

A collaborative effort or project involving two or more parties working together towards a common goal.