In the Short Run, as Immigration Occurs and More Labor

question 101

Multiple Choice

In the short run, as immigration occurs and more labor is employed, what will happen to the marginal products of land and capital (fixed resources) in the destination country?

• A) Neither will be affected.
• B) Both will rise.
• C) Both will fall.
• D) The marginal products of land marginal product of land will rise and the marginal product of capital will fall.

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Definitions:

Perfectly Elastic

Describes a situation where the quantity demanded or supplied can change infinitely with any small change in price.

Price

The total monetary value expected, obliged, or handed over in exchange for something.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level in a specified period.

Table: Price Elasticity

A tabulated representation that shows how the quantity demanded of a good or service responds to changes in its price, indicating the sensitivity of consumers to price changes.