Question
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
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
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