When a nation's institutional environment is more favorable, it will
a. attract more physical investment.
b. encourage individuals to invest more heavily in human capital.
c. encourage the development and efficient use of natural resources.
d. all of the above.
D
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The figure below represents the effects in the labor markets due to migration. Here, the world has been divided into a high-income "North" (left panel) and a low-income "South" (right panel). Dn and Sn are the labor demand and the labor supply curves in North. Ds and (Sr + Smig) are the labor demand and pre-migration labor supply curves in South. Sr is the post-migration labor supply curve in South. The value c is the cost of migrating.
The migration cost on a per hour basis is
A. $2.50. B. $1.25. C. $4.25. D. $6.75.
When 2 units of labor are used, output is
A. 5.
B. 8.
C. 10.
D. 13.