Consider a Hypothetical Economy in Which Only Computers and Shoes

Multiple Choice

Consider a hypothetical economy in which only computers and shoes are produced and in which computer production is capital intensive compared with shoe production. If two resources are being used, labor and capital, then any increase in immigration in the long run:

A) will cause the capital-labor ratio to increase in the computer industry.
B) will cause the capital-labor ratio to increase in the shoe industry.
C) will cause the capital-labor ratio to increase in both the industries.
D) will increase the number of workers employed in the shoe industry.