In the Long Run, Immigration Will Lead to a Rightward

question 118

Multiple Choice

In the long run, immigration will lead to a rightward
Shift in the receiving country's production possibilities
Frontier.As a result, this shift will:

• A)favor the labor­intensive good.
• B)favor the capital­intensive good.
• C)equally favor the labor­intensive and the capital­ intensive good.
• D)cause an increase in the production of the labor­ intensive good and a decrease in the capital­intensive
• Good.

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Definitions:

Long Run

A period in which all factors of production and costs are variable, allowing for full adjustment to changes in economic conditions.

Average Cost

The total cost of production divided by the number of units produced, providing a measure of the cost per unit of output.

Total Costs

The complete sum of all expenses, direct and indirect, incurred in the production of goods or services.

Average-Fixed-Cost Curve

A graph that shows the average fixed costs of production at different levels of output.