Which of the following would be considered a real (as opposed to pecuniary)externality associated with migration?
A)Capital owners in the origin will lose income as wages rise in response to reduced labor supply
B)More public services will be required in the destination and there will be excess capacity of public goods in the origin
C)Profits of capital owners at the origin will rise as migrants leave
D)Wages of destination workers will fall as migrants enter and add to labor supply

Question

Quizplus · Accepted Answer

Real externalities involve changes in the real costs and benefits associated with goods and services, not just monetary transfers or changes in income. The need for more public services in the destination and excess capacity of public goods in the origin due to migration is a real externality, as it involves changes in the actual provision and consumption of public goods, not just financial impacts.

Which of the Following Would Be Considered a Real (As