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The Figure Given Below Represents the Effects in the Labor

Question 44

Multiple Choice

The figure given below represents the effects in the labor markets due to migration. Here the world has been divided into a high-income "North" (left panel) and a low-income "South" (right panel) . Dn and Sn are the labor demand and the labor supply curves in North. Ds and (Sr + Smig) are the labor demand and pre-migration labor supply curves in South. Sr is the post-migration labor supply curve in South. The value c is the cost of migrating. The figure given below represents the effects in the labor markets due to migration. Here the world has been divided into a high-income  North  (left panel)  and a low-income  South  (right panel) . D<sub>n</sub> and S<sub>n</sub> are the labor demand and the labor supply curves in North. D<sub>s</sub> and (S<sub>r</sub> + S<sub>mig</sub>)  are the labor demand and pre-migration labor supply curves in South. S<sub>r</sub> is the post-migration labor supply curve in South. The value c is the cost of migrating.   When migration between North and South is allowed, how many workers will choose to migrate to North? A) 20 million B) 30 million C) 40 million D) 50 million When migration between North and South is allowed, how many workers will choose to migrate to North?


A) 20 million
B) 30 million
C) 40 million
D) 50 million

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