The implication of resources being mobile domestically is that:
A) there is often unemployment.
B) capital and land are often not suited for use in other industries.
C) labor is paid the same wage and capital receives the same rental price in all domestic industries.
D) they lose the chance to become guest workers in other nations.

Question

Quizplus · Accepted Answer

If resources are mobile domestically, labor and capital can easily move from one industry to another. This means that they are paid the same wage and rental price in all industries, leading to a more efficient allocation of resources. Unemployment may still occur, but that could be due to other factors such as skills mismatch or inadequate job opportunities. B and D are not necessarily true because mobile resources can be suitable for use in other industries and workers may choose not to become guest workers.

The Implication of Resources Being Mobile Domestically Is That