The migration of employable workers from low-paying nations to high-paying nations will ?
Correct answer: C. increase business or capitalist incomes in the high-paying nations
- A. decrease wage rates in the low-paying nations
- B. decrease productivity and real output in the world
- C. increase business or capitalist incomes in the high-paying nations
- D. increase business or capitalist incomes in the low-paying nations
Explanation
Migration into high-wage countries expands labor supply there, which can reduce wages while increasing the return to complementary capital and business ownership. Thus business or capitalist incomes in the high-paying nations are likely to rise.
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