In the two-country model of international labor mobility
A) migration results in increased global output, although some groups are made worse off.
B) migration results in increased global output, and all groups are made better off.
C) migration has no effect on global output, although some groups are made worse off.
D) migration has no effect on global output, although some groups are made better off.
E) migration may reduce global output, although some groups are made better off.

Question

Quizplus · Accepted Answer

In the two-country model of international labor mobility, migration results in increased global output, although some groups are made worse off. This is because migration benefits the receiving country by increasing its labor force, which leads to higher output, but can harm the sending country's labor force, resulting in lower wages and fewer jobs. Therefore, while global output increases due to migration, some individuals or groups may experience negative effects.

In the Two-Country Model of International Labor Mobility