If capital is specific to manufacturing and land is
Specific to agriculture, then migration of labor from
Lowincome to highincome countries will cause:
A)the wage to rise in the highincome country and the wage to fall in the lowincome country.
B)the wage to fall in the highincome country and the wage to rise in the lowincome country.
C)the wage to rise in both the highincome and low income countries.
D)the wage to fall in both the highincome and low income countries.

Question

If capital is specific to manufacturing and land is
Specific to agriculture, then migration of labor from
Low­income to high­income countries will cause:
A)the wage to rise in the high­income country and the wage to fall in the low­income country.
B)the wage to fall in the high­income country and the wage to rise in the low­income country.
C)the wage to rise in both the high­income and low­ income countries.
D)the wage to fall in both the high­income and low­ income countries.

Quizplus · Accepted Answer

Migration of labor from low-income to high-income countries increases labor supply in the high-income country, causing wages to fall there, while reducing labor supply in the low-income country, causing wages to rise there.

If Capital Is Specific to Manufacturing and Land Is