Most governments at least try to make it difficult for people to cross their borders illegally.This barrier to the free movement of labor is an example of
A)information asymmetry.
B)excessive transactions costs.
C)racial discrimination.
D)a market imperfection.

Question

Quizplus · Accepted Answer

The barrier to the free movement of labor due to government restrictions on crossing borders illegally is an example of a market imperfection. Market imperfections are factors that hinder the efficient functioning of the market, and in this case, the restriction affects the labor market by limiting the ability of workers to freely move and work where they might be most needed or where they could achieve higher productivity.

Most Governments at Least Try to Make It Difficult for People