Assuming competitive markets,migration in response to wage differentials will likely result in:
A)an increase in the total value of output,but reduced economic efficiency
B)a decrease in both the value of output and economic efficiency
C)an increase in both the value of output and economic efficiency
D)an increase in the size of the wage differential

Question

Quizplus · Accepted Answer

Migration in response to wage differentials can lead to an increase in both the value of output and economic efficiency. This is because workers are more likely to move to areas or sectors where they can earn higher wages, leading to a more efficient allocation of resources as labor is allocated to more productive uses. Additionally, increased competition from migrant workers can lead to lower prices for goods and services, increasing the overall value of output. Thus, assuming competitive markets, migration can be beneficial for both the receiving and sending economies.

Assuming Competitive Markets,migration in Response to Wage Differentials Will Likely