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

question 59

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. If migration is costless and unimpeded,

• A)no migration will occur.
• B)migration will cause the wage in Marigold to fall.
• C)2 workers will move from Marigold to Zinnia.
• D)4 workers will move from Marigold to Zinnia.

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