In Order to Analyze Migration in the Long Run, It

question 53

Multiple Choice

In order to analyze migration in the long run, it is
Appropriate to use:

• A)the specific­factors model with free movement of labor across borders.
• B)the Heckscher­Ohlin model with free movement of labor across borders.
• C)the Ricardian model with no movement of labor across borders.
• D)the PPF modified for three goods, three factors of production (all fixed), and three nations.

---

Definitions:

Marginal Cost

The extra expense associated with the production of an additional unit of a product or service.

Equilibrium Price

A market condition's price point where the quantity of goods producers wish to sell equals the quantity consumers wish to buy.

Production Functions

A mathematical representation of how inputs are transformed into outputs in the production process.

Variable Factors

Inputs to production that can be adjusted in the short run, such as labor and raw materials.