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In Economic Development, "Brain Drain" Refers to the Tendency of a Developing

Question 114

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In economic development, "brain drain" refers to the tendency of a developing country's most skilled workers leaving to work in a wealthy country. Why can skilled foreign workers from poor countries make so much more money in wealthy countries?


A) because there are many skilled workers in poor countries
B) because the demand for skilled workers is higher in wealthy countries
C) because the marginal product of labor of skilled workers is high in poor countries
D) because the foreign workers must be compensated since employers know the worker will want to send a large chunk of her earnings to her family

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