Suppose that wages are higher in one geographic region (Region 1) of a country than in another geographic region (Region 2). Given free migration of workers,
a. wages in the two regions will become even more divergent.
b. wages in Region 1 will rise.
c. wages in Region 2 will rise.
d. employment in Region 2 will rise.
c. wages in Region 2 will rise.
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When production efficiency does NOT occur,
i. an economy is producing at a point within its PPF. ii. there are unemployed resources. iii. allocative efficiency cannot occur. A) i only B) i and ii C) iii only D) i and iii E) i, ii, and iii
Which of the following is true?
a. The balance of payments is like a sources and uses of funds statement. b. The balance of payments includes only transactions for which there are financial payments. c. The balance of payments is calculated at a point in time (e.g., amounts at year's end). d. None of the above is correct.