Question
26. Consider a Specific Factors Model in which skilled labour is the mobile factor, and unskilled labour and capital are the specific factors. Then, as
26. Consider a Specific Factors Model in which skilled labour is the mobile factor, and unskilled labour and capital are the specific factors. Then, as a result of unskilled 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 gain 70, skilled workers lose 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 60, and capitalists gain 100. (d) Unskilled workers lose 30, skilled workers gain 60, and capitalists gain 40. (e) None of the above
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