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If Capital Is Specific to Manufacturing and Land Is Specific

Question 19

Multiple Choice

If capital is specific to manufacturing and land is specific to agriculture, then migration of labor from low-income to high-income countries will cause the wage to:


A) rise in the high-income country and the wage to fall in the low-income country.
B) fall in the high-income country and the wage to rise in the low-income country.
C) rise in both the high-income and low-income countries.
D) fall in both the high-income and low-income countries.

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