Suppose That Rosa Is Considering Migration to Another Country

question 149

Multiple Choice

Suppose that Rosa is considering migration to another country. To move, she will have to spend $5,000 on transportation and $4,000 in application and other processing fees. Rosa's stream of future earnings in her home country is $500,000. She expects to earn a stream of future earnings of $800,000 in another country. Based on this information, Rosa will decide to migrate as long as the implicit costs of leaving her friends and family and adjusting to a new culture are

• A)greater than $509,000.
• B)less than $300,000.
• C)less than $91,000.
• D)less than $291,000.

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Definitions:

Gross Salary

The total compensation received by an employee before any deductions like taxes, retirement contributions, and health insurance.

Commissioned

The act of formally choosing someone to perform a particular task or granting them the authority to carry out a specific duty.

Vehicle Sold

Transaction event in which ownership of a vehicle is transferred from the seller to the buyer.

Average Rate

A calculation representing the sum of rates over a set period divided by the number of rates, used to determine a common or typical value.