If labor were completely mobile between Muncie,Indiana,and Lexington,Kentucky,and the cost of living was the same in each city,we would expect to find that
A)accountants in Muncie earn the same wage rate as garbage collectors in Lexington
B)garbage collectors in Lexington earn more than accountants in Muncie
C)garbage collectors in Muncie earn the same wage rate as accountants in Lexington
D)all accountants in Lexington would earn the same wage rate
E)accountants in Muncie earn the same wage rate as accountants in Lexington

Question

Quizplus · Accepted Answer

If labor were completely mobile and the cost of living was the same in each city, we would expect to find that wages for similar jobs would be equalized across the two cities, which means accountants in Muncie would earn the same wage rate as accountants in Lexington.

If Labor Were Completely Mobile Between Muncie,Indiana,and Lexington,Kentucky,and the Cost