If Capital Is Specific to Manufacturing and Land Is Specific

question 19

Multiple Choice

If capital is specific to manufacturing and land is specific to agriculture, then migration of labor from low-income to high-income countries will cause the wage to:

• A) rise in the high-income country and the wage to fall in the low-income country.
• B) fall in the high-income country and the wage to rise in the low-income country.
• C) rise in both the high-income and low-income countries.
• D) fall in both the high-income and low-income countries.

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Definitions:

Method Of Elimination

A technique for solving systems of equations by adding or subtracting the equations to eliminate one of the variables.

Initial Investment

The starting amount of money put into an investment or project.

Weekly Revenue

The total income generated from business activities or sales within a week.

Break Even

The point at which total costs and total revenues are equal, resulting in no net loss or gain.