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If There Is Diminishing Marginal Productivity of Labor in Production

Question 12

Multiple Choice

If there is diminishing marginal productivity of labor in production (with other inputs held constant) , an outmigration of labor from low-wage country A to higher-wage country B will lead, other things equal, to a __________ in per capita income in country B and __________ in per capita income in country A.


A) rise; also to a rise
B) rise; to a fall
C) fall; also to a fall
D) fall; to a rise

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