In the Two-Country Model of International Labor Mobility

question 20

Multiple Choice

In the two-country model of international labor mobility

• A) the effect of migration is to cause real wages in the two countries to converge.
• B) the effect of migration is to cause real wages in the two countries to diverge.
• C) labor has only limited international mobility.
• D) the long-run equilibrium global real wage is equal to the lesser of the pre-migration wages in the two countries.
• E) the long-run equilibrium global real wage is equal to the greater of the pre-migration wages in the two countries.

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Definitions:

Reluctant

Feeling or showing hesitation or unwillingness to do something.

Advocacy

The act of supporting a cause or proposal; the work of advocating for something.

Conservative

A political and social philosophy promoting traditional values and institutions.

Planned Change

A deliberate process designed to improve or alter a situation, system, or organization through structured steps and strategies.