Fluctuations in aggregate demand and aggregate supply explain why real GDP fluctuates

In the specificfactors model, migration of labor will cause:

a. the wage to rise in the receiving country and the wage to fall in the sending country. b. the wage to fall in the receiving country and the wage to rise in the sending country. c. the wage to rise in both the receiving and sending countries. d. the wage to fall in both the receiving and sending countries.

Assume the production of a good gives rise to external benefits. The government may increase efficiency by

A) subsidizing consumption of the good. B) requiring all producers of the good to be licensed. C) taxing production of the good. D) imposing taxes on the good.