Assuming the standard migration model is correct, estimates of the cost of moving can be as high as $300,000. What is likely the worst explanation for what this expense is so high?
A. People may place a high cost on leaving family and friends.
B. People may place a high utility value on the cultural benefits and assimilation of their current location.
C. People may attach a very high utility to the social amenities in one's birthplace.
D. Moving companies typically charge tens of thousands of dollars to transport household goods from one location to another.
E. The psychic costs of moving, for example, the uncertainty of making friends and adjusting to a new city, may be quite high for some people.
Answer: D
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Refer to Table 2-2. Assume Billie's Bedroom Shop only produces pillows and blankets. A combination of 9 pillows and 21 blankets would appear
A) along Billie's production possibilities frontier. B) inside Billie's production possibilities frontier. C) outside Billie's production possibilities frontier. D) at the vertical intercept of Billie's production possibilities frontier.
By engaging in quantitative easing, the Fed is attempting to reduce the ________, causing the MP curve to ________
A) term premium and the real interest rate; shift down B) unemployment rate and the inflation rate; shift down C) short-term nominal and real interest rates; shift up D) federal funds rate; shift up
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2. B. P2 and Y3. C. P3 and Y1. D. P2 and Y2.
The lack of investment in developing countries is at least in part attributable to:
A. high levels of foreign aid. B. low levels of domestic savings. C. inappropriate education. D. overpopulation.