Between 1870 and 1913, labor migration from the "Old World" (Europe) to the "New World" (the United States, Canada, and Australia):
A) decreased the rate of growth of real wages in the New World and increased the rate of growth of real wages in the Old World.
B) increased the rate of growth of real wages in the New World and decreased the rate of growth of real wages in the Old World.
C) decreased the rate of growth of real wages in both the New and Old Worlds.
D) increased the rate of growth of real wages in both the New and Old Worlds.

Question

Quizplus · Accepted Answer

Labor migration from Europe to the United States, Canada, and Australia increased the labor supply in the New World, which tended to decrease the rate of growth of real wages there due to increased competition for jobs. Conversely, this migration decreased the labor supply in the Old World (Europe), which tended to increase the rate of growth of real wages there due to reduced competition for jobs.

Between 1870 and 1913, Labor Migration from the "Old World