Refer to the given diagram and assumptions. If migration is costless and unimpeded:
Assumptions: (1) The demand for labor in Alphania and Betania are as shown by D A and D B ,respectively; (2) Alphania's native labor force is F and that of Betania is g; (3) wage L in Alphania is equal to wage m in Betania; and (4) full employment exists in both countries.
A. migration will cause the average level of wages to fall in Alphania.
B. no migration will occur.
C. fg workers will move from Betania to Alphania.
D. GF workers will move from Alphania to Betania.
D. GF workers will move from Alphania to Betania.
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The absolute price of a good is the price of that good in terms of another good
Indicate whether the statement is true or false
The hedonic price method
a. is a direct method of estimating benefit b. relies on the theory that goods are valued for their attributes c. is a physical linkage approach d. is useful but not intuitive
The rarest migration pattern is for people to move permanently from
A) poor countries to richer countries. B) poor countries to other poor countries. C) rich countries to poor countries. D) rich countries to other rich countries.
Government intervention can increase total welfare when
A) there are costs or benefits that are external to the market. B) consumers do not have perfect information about product quality. C) a high price makes the product unaffordable for most consumers. D) all of the above E) A and B only