The supply of labor is not very internationally mobile, in part because people in different countries speak different languages. If everyone learned the same language, worker mobility would increase and:
A) the supply of labor in each country would become more inelastic.
B) the deadweight loss of a given tax on labor would decrease.
C) the demand for labor in each country would become more elastic.
D) governments would not be able to raise as much revenue through taxes on labor.

Question

Quizplus · Accepted Answer

If worker mobility increases due to a common language, labor can move more freely across borders, making it harder for governments to tax labor without losing workers to other countries, thus reducing potential tax revenue.

The Supply of Labor Is Not Very Internationally Mobile, in Part