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D. Implicit costs of migrating are not affected by distance.
145.
Suppose that Rosa is considering migration to another country. To move, she will have to
spend $5,000 on transportation and $4,000 in application and other processing fees. Rosa’s
stream of future earnings in her home country is $500,000. She expects to earn a stream of
future earnings of $800,000 in another country. Based on this information, Rosa’s implicit
cost of migrating is
146.
Suppose that Rosa is considering migration to another country. To move, she will have to
spend $5,000 on transportation and $4,000 in application and other processing fees. Rosa’s
stream of future earnings in her home country is $500,000. She expects to earn a stream of
future earnings of $800,000 in another country. Based on this information, Rosa’s explicit
cost of migrating is