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Suppose That, Other Things Equal, Labor Moves from Country a to Country

Question 21

Multiple Choice

Suppose that, other things equal, labor moves from country A to country B. In a two-Factor world (capital and labor) , this labor movement will lead to


A) an increase in the total return to owners of capital in country A.
B) a decrease in the total return to owners of capital in country A.
C) a decrease in the wage rate in country B.
D) a decrease in total wages paid in country B.

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