Multiple Choice
If the wage rate in the agriculture sector is lower than the manufacturing sector, then labor will migrate to the manufacturing sector. This will cause:
A) both the wage and the marginal product of labor in the manufacturing sector to decrease.
B) both the wage and the marginal product of labor in the agriculture sector to decrease.
C) the nation to import more goods.
D) There will be no effect on either sector.
Correct Answer:
Verified
Correct Answer:
Verified
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