Answer questions on the basis of the following diagram. Assume all migration is costless.

-Assume there are initially 1000 workers in country X and 500 workers in country Y.As workers begin to migrate,the total value of output will:
A)increase in country X and decrease in country Y; the combined total will increase
B)increase in country X and decrease in country Y; the combined total will decrease
C)increase in country X and decrease in country Y; the combined total will not change
D)not change in either country

Question

Answer questions on the basis of the following diagram. Assume all migration is costless.

-Assume there are initially 1000 workers in country X and 500 workers in country Y.As workers begin to migrate,the total value of output will:
A)increase in country X and decrease in country Y; the combined total will increase 
B)increase in country X and decrease in country Y; the combined total will decrease 
C)increase in country X and decrease in country Y; the combined total will not change 
D)not change in either country

Quizplus · Accepted Answer

As workers begin to migrate, the total value of output will increase in country X as it will have more workers to produce goods and services. On the other hand, the total value of output will decrease in country Y as it will lose workers, leading to a decrease in production. However, the combined total will increase as country X's increase in output will outweigh country Y's decrease in output, leading to overall growth.

Answer Questions on the Basis of the Following Diagram