To study labor migration using the specific-factors model, we assume ________ and ________ cannot move within the domestic economy, but we allow ________ to move both domestically and internationally.
A) land; capital; labor
B) labor; land; capital
C) land; loanable funds; capital
D) labor; capital; land

Question

Quizplus · Accepted Answer

In the specific-factors model, land and capital are considered immobile within the domestic economy, meaning they cannot easily move from one sector to another. Labor, on the other hand, is assumed to be mobile and can move both within the domestic economy and internationally. This model is used to analyze the impact of trade and labor migration on income distribution and the allocation of resources.

To Study Labor Migration Using the Specific-Factors Model, We Assume