Assume there are no labor market frictions. If the equilibrium wage rate in country A is greater than the equilibrium wage rate in country B, then which of the following is most likely to occur?

Question

Accepted Answer

Workers from country B would move to higher wage country A, while the firms from country A would move to lower wage country B, resulting in an arbitrage.

Answer

Workers from country B would move to higher wage country A, while the firms would stay put in their respective countries.

Answer

Firms from country A would move to lower wage country B, while the workers would stay put in their respective countries

Answer

Policy makers would make sure the wage is equalized in both countries to avoid immigration and outsourcing.

Assume there are no labor market frictions. If the equilibrium wage rate in country A is greater than the equilibrium wage rate in country B, then which of the following is most likely to occur?

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Assume there are no labor market frictions. If the equilibrium wage rate in country A is greater than the equilibrium wage rate in country B, then which of the following is most likely to occur?

❤ If you liked Fatskills, consider supporting us by checking out The Life Manuals You Never Got.

About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | What Should We Know? Privacy | Terms |

Without work one finishes nothing. - Ralph Waldo Emerson© 2026 Fatskills.com

All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.

About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | What Should We Know?
Privacy | Terms |

Without work one finishes nothing. - Ralph Waldo Emerson
© 2026 Fatskills.com