Worker Migration Will Cause Wage Rates to Equalize Across Two

question 106

Multiple Choice

Worker migration will cause wage rates to equalize across two countries if all of the following conditions are met except that

• A) migration is motivated strictly by wage differentials.
• B) neither nation restricts or interferes with migration.
• C) both countries use the same currency.
• D) migration has no cost.

---

Definitions:

Long-term Sales

Transactions or sales contracts that are expected to be fulfilled over an extended period of time.

Fixed Costs

Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance premiums, contributing to a company's overhead.

Special Orders

Orders that are outside the normal scope of products or services offered by a business, often requiring special pricing, terms, or conditions.

Absorption Costing

An accounting method that includes all of the direct and indirect manufacturing costs in the cost of a product.