Free Labor Migration Is More Effective at Improving Welfare in Low-Income

question 34

Multiple Choice

Free labor migration is more effective at improving welfare in low-income countries than moving capital because:

• A) it moves the labor to the place where productivity is high.
• B) low-income countries do not have much capital per person.
• C) it moves labor to the place where there is a lot of capital per person.
• D) it moves labor to the place where there is not much capital per person.
• E) it is cheaper to move labor than capital.

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Definitions:

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