Multiple Choice
Symbols: Q = number of workers demanded; W = wage rate; and VTP = value of the cumulative total product (output) of the particular number of workers. Assumptions: (1) The current wage in Zinnia is $20, and the current wage in Marigold is $12; (2) full employment exists in both countries. If migration is costless and unimpeded, the combined value of total product in the two countries will
A) decline from $62 to $36.
B) decline from $120 to $70.
C) increase from $36 to $62.
D) increase from $62 to $70.
Correct Answer:
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