Suppose That Wages Are Higher in One Geographic Region (Region

question 17

Multiple Choice

Suppose that wages are higher in one geographic region (Region 1) of a country than in another geographic region (Region 2) .  Given free migration of workers,

• A) wages in the two regions will become even more divergent.
• B) wages in Region 1 will rise.
• C) wages in Region 2 will rise.
• D) employment in Region 2 will rise.

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Definitions:

Manufacturing Overhead

Indirect costs related to the production process, such as utilities, maintenance, and salaried personnel, not directly attributable to specific units of output.

Variable

An element or factor that can change or vary, impacting the outcome of mathematical models, experiments, or financial forecasts.

Fixed Costs

These are expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Activity Index

A measure used to quantify the level of activity or engagement in a specific area, often used in various financial and operational analysis.