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If the Wage Rate in the Agriculture Sector Is Lower

Question 33

Multiple Choice

If the wage rate in the agriculture sector is lower than
The manufacturing sector, then labor will migrate to the
Manufacturing sector.This will cause:


A) both wage and marginal product of labor in the manufacturing sector to decrease.
B) both wage and marginal product of labor in the agriculture sector to decrease.
C) the nation to import more goods.
D) There will be no effect on either sector.

Correct Answer:

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