Question

The country Panjim has been growing at the rate of 8 percent annually following a series of economic reforms. Adelphia, a neighboring country, is also growing rapidly, but at a rate that is slightly lower than Panjim's. Elaine Mack and Prisca Baresi, who live in Adelphia, are discussing whether Adelphia's economy will surpass Panjim soon. Elaine is of the opinion that the high level of sales of capital goods indicates that growth in Adelphia will only increase further. Prisca however reminds Elaine that the working population in Adelphia is shrinking, which will actually reduce its growth prospects Which of the following, if true, will weaken Prisca's view that Adelphia does not have good growth prospects? A. Although inequality in Adelphia has fallen, the number of people under the poverty line has not reduced significantly.B. Nominal wages in Adelphia increased by a smaller proportion than the increase in prices. C. Adelphia is highly dependent on the import of oil and food grains.D. The number of highly-skilled workers migrating from Adelphia to foreign countries has fallen. E. Compared to Adelphia, Panjim, is better endowed with natural resources

Answer 1

Answer:

D. The number of highly-skilled workers migrating from Adelphia to foreign countries has fallen.

Explanation:

If the decrease in the working population of Adelphia was caused by workers migrating from Adelphia to other nations, then if the rate of emigration has fallen (probably because the local economy is improving), the total working population of Adelphia should either remain the same or increase.  

A lot of people that emigrate away from their home countries do it because they are seeking better job opportunities and a better living conditions. If Adelphia's economy is growing then the living conditions in the country should improve, so less people have to emigrate the country seeking a better life. For example, if living standards had been great in Europe during the last 3 centuries, then the US would have a very small population and there would be much more Europeans (and Latin Americans, Chinese, etc.) in their home countries.