In the Specific-Factors Model, Migration of Labor Will Cause the Wage

question 18

Multiple Choice

In the specific-factors model, migration of labor will cause the wage to:

• A) rise in the receiving country and the wage to fall in the sending country.
• B) fall in the receiving country and the wage to rise in the sending country.
• C) rise in both the receiving and sending countries.
• D) fall in both the receiving and sending countries.

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Definitions:

Production Costs

The total expense incurred in manufacturing a product or providing a service, including materials, labor, and overhead costs.

Pure Competition

A market structure characterized by a large number of small firms producing identical products with no barriers to entry or exit.

Economic Profits

The difference between the total revenue from sales and the total costs of production, including both explicit and implicit costs, representing excess earnings above the normal profit level.

Demand Curve

An illustrated curve that demonstrates how demand for a product decreases as its price increases, commonly presented with a downward trajectory.