Refer to the given data, symbols, and assumptions. If migration is costless and unimpeded:
Symbols: Q = number of workers demanded; W = wage rate; and VTP = value of the cumulative total product (output) of the particular number of workers.
Assumptions: (1) The current wage in Zinnia is $20 and the current wage in Marigold is $12; (2) full employment exists in both countries.
A. no migration will occur.
B. migration will cause the wage in Marigold to fall.
C. 2 workers will move from Marigold to Zinnia.
D. 4 workers will move from Marigold to Zinnia.
C. 2 workers will move from Marigold to Zinnia.
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A. lower than before the price change. B. indeterminate without more information. C. the same as before the price change. D. higher than before the price change.
Globalization entails all of the following except:
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