Assumptions: (1)The Demand for Labor in Alphania and Betania Are

question 117

Multiple Choice

Assumptions: (1) The demand for labor in Alphania and Betania are as shown by Dₐ and Dᵦ , respectively; (2) Alphania's native labor force is F and that of Betania is g; (3) wage L in Alphania is equal to wage m in Betania; and (4) full employment exists in both countries. If migration is costless and unimpeded, the absolute wage bill will necessarily

• A)increase in Alphania if its labor demand curve is elastic.
• B)increase in Betania if its labor demand curve is elastic.
• C)decrease in Betania.
• D)increase in Betania.

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