Question
21. Consider a Specific Factors Model in which labour is the mobile factor, and land and capital are the specific factors. Then, as a result
21. Consider a Specific Factors Model in which labour is the mobile factor, and land and capital are the specific factors. Then, as a result of migration from country A to country B, the following changes in the incomes of workers, capitalists, and landowners are possible in country B: (a) Workers lose 50, landowners lose 20, and capitalists gain 80. (b) Workers lose 70, landowners lose 20, and capitalists gain 80. (c) Workers lose 90, landowners gain 20, and capitalists gain 80. (d) Workers lose 110, landowners gain 20, and capitalists gain 80. (e) None of the above
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started