Multiple Choice
In the long run, when there is immigration of labor and all domestic factors of production are mobile:
A) resources move out of the labor-intensive industry into the other sectors of the economy.
B) the excess labor cannot be absorbed into the economy, and eventually workers will seek to emigrate.
C) the excess labor is absorbed, but it raises the unemployment rate and drives down wages, and the owners of capital are the clear winners.
D) the additional labor in the economy is fully employed and the capital-labor ratio in each industry is unchanged
Correct Answer:

Verified
Correct Answer:
Verified
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