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Question no. 23843

What will happen due to the migration of employable workers from low-paying nations to high-paying nations ?

Select your answer for: What will happen due to the migration of employable workers from low-paying nations to high-paying nations ?
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Answer: C. increase business or capitalist incomes in the high-paying nations

Explanation

Capitalists in high-paying nations benefit from an expanded labor supply. Cheaper labor inputs reduce production expenses and boost overall business profits. Economic returns to capital owners rise when migration lowers wage pressures. Labor migration alters factor proportions in both origin and destination countries. Standard economic models predict wages fall in destination and rise in origin countries. Total world output expands due to more efficient allocation of global human resources.

Business associations often support moderate immigration to fill labor market gaps. Income distribution shifts between workers and capital owners following migration waves. Policy makers weigh capitalist gains against wage impacts on domestic workers. Wage rates in low-paying nations tend to increase as domestic labor supply shrinks. World productivity and real output actually increase due to better resource allocation. Business incomes in low-paying nations face higher labor costs due to scarcity.

Subject
Economics
Category
Economics
Topic
—
Difficulty
medium

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