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

question 152

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, the wage in both countries will equalize at

• A)$16.
• B)$18.
• C)$20.
• D)$14.

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Definitions:

Economic Growth

An increase in the production of goods and services in an economy over a period of time, often measured as the percentage increase in real gross domestic product (GDP).

Postindustrial Period

a stage in societal development that occurs after the industrial period, characterized by an economy focused more on services than on manufacturing.

Mature Industrial

Pertains to an industrial phase characterized by stable growth, well-established industries, and lower levels of innovation compared to earlier growth phases.

Transitional Period

A phase of change from one state or condition to another, often characterized by uncertainty and development.