Juan works at Texas Burgers in El Paso and earns $8.00 per hour. His twin brother Felipe works in Mexico Burgers in Ciudad Juarez just across the border and earns $3.00 per hour for exactly the same work. An economist looking at this situation sees:
A. an incentive for Felipe to quit and find another job in Mexico.
B. an incentive for Felipe to cross the border to get a job and thus reduce the gap.
C. evidence that the law of one price has no support in the real world.
D. the tendency of the rich to get richer and the poor to get poorer, widening the gap.
Answer: B
Economics
You might also like to view...
In which system are decisions made by thousands of people who have information about resources, production technology and consumer desires?
A) market system B) socialist system C) centrally planned system D) command system
Economics
The Lorenz curve represents: a. the line of perfect inequality
b. the line of perfect equality. c. the nonwage income of households. d. the actual distribution of income.
Economics