Question: 24. Consider a situation in which two countries (A and B) are producing a single good with labour and capital, and that initially the return

24. Consider a situation in which two countries (A and B) are producing a single good with labour and capital, and that initially the return to capital (i.e. the marginal product of capital) is higher in country B. Free migration from A to B will: (a) increase the GDP of both countries (b) increase the wage rate in both countries (c ) increase capitalists' incomes in both countries (d) decrease the wage rate in both countries (e ) none of the above

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

2. Consider a situation in which two countries (A and B) are producing a single good with labour and capital, and that initially the return to capital (i.e. the marginal product of capital) is higher...

7. Consider a situation in which two countries (A and B) are producing a single good with labour and capital, and that initially the wage rate is higher in country B. Free migration from A to B will:...

8. Consider a situation in which two countries (A and B) are producing with identical technology a single good with labour and capital, and that initially there is the same quantity of labour in both...

PLS HELP ME 6. (4p) Consider a Heckscher-Ohlin model with two countries, Home and Foreign, and two factors of production, land (T) and labor (L). Land and labor are used to produce two goods, gadgets...

ECON 3365.2: INTERNATIONAL ECONOMIC ISSUES FINAL EXAM Due on April 14, 2020 Part I: Answer any FOUR (4) of the following questions (Note: Part I is worth 70% of the Final Exam; 28 out of 40 marks;...

Please help me with the following international economics assignment Section B: Short questions [40 marks] 1. Consider two countries (Home and Foreign) that produce goods 1 (with labour and capital)...

Please help me with the following Consider two countries (Home and Foreign) that produce goods 1 (with labour and capital) and 2 (with labour and land) according to the production functions described...

Please help Consider two countries (Home and Foreign) that produce goods 1 (with labour and capital) and 2 (with labour and land) according to the production functions described in specic factors...

Consider a world composed of two countries, Home (H) and Foreign (F). Individuals living in each country i H, F have preferences over two goods x and y. In each country there is only one factor of...

Consider a world composed of two countries, Home (H) and Foreign (F). Individuals living in each country i = H, F have preferences over two goods and y. In each country there is only one factor of...

An investor believes there is a 5050 chance that a stock will increase on a particular day. To investigate this idea, for 30 consecutive trading days the investor selects a random sample of 50 stocks...

In Problem 41-44, use a comparison test (see Problem 46 of Section 8.4) to decide whether each integral converges or diverges. 1. 2. 3. 4. 6 + x 3 In

Which one of the following bonds is the most sensitive to changes in market interest rates? 1 0 - year, 5 percent coupon 5 - year, 8 percent coupon 1 0 - year, zero coupon 5 - year, zero coupon 5 -...

Are there any government regulations and / or competition from other companies that have influenced Moderna's products? Give a specific example.

The negotiations between Grand Plumbing Services International and its union have become deadlocked. What form of bargaining power does each side possess to enforce its bargaining demands? What are...

Welcome aboard CUPE, a media story produced by the Canadian Union of Public Employees, tells the story of what unionized flight attendants can look for from their union and is probably a union...

What are the reasons for success in Jazz reaching a long-term collective agreement with its pilots?