Question
10. Consider a Specific Factors Model in which unskilled labour is the mobile factor, and skilled labour and capital are the specific factors. Then, as
10. Consider a Specific Factors Model in which unskilled labour is the mobile factor, and skilled labour and capital are the specific factors. Then, as a result of skilled workers migration from country A to country B, the following changes in the incomes of unskilled workers, skilled workers, and capitalists are possible in country B: (a) Unskilled workers lose 50, skilled workers gain 20, and capitalists gain 80. (b) Unskilled workers gain 10, skilled workers lose 70, and capitalists gain 60. (c) Unskilled workers lose 30, skilled workers lose 40, and capitalists gain 80. (d) Unskilled workers gain 70, skilled workers lose 80, and capitalists gain 20. (e) None of the above
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