Multiple Choice
The simple immigration model assumes that the capital stock is constant in each country. If this assumption is relaxed, then the
A) rise in business income in the low-wage country will increase the return on capital, which will increase the demand for labor.
B) fall in business income in the low-wage country will decrease the return on capital, which will decrease the demand for labor.
C) rise in business income in the low-wage country will decrease the return on capital, which will decrease the demand for labor.
D) fall in business income in the low-wage country will increase the return on capital, which will increase the demand for labor.
Correct Answer:
Verified
Correct Answer:
Verified
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