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2 marksWage Differentials

CAPE Economics Unit 1 · 2005 · Paper 1 · Question 15(a)

A large migration of workers from Country A to Country B occurs.

Explain the effect of this labour migration on wage rates in Country A and Country B.

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Other parts of this question

  1. 15(b)Classify the two described scenarios under the concepts of asymmetric information, moral hazard, or adverse selection.[4 marks]

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