In the Long Run, When There Is Immigration of Labor

question 146

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

---

Definitions:

Fabrication Department

A specialized division within a company responsible for the manufacturing and assembly of products or components.

Weighted-Average Method

A technique for calculating the cost of goods sold and remaining stock that uses the mean cost of all available units for sale.

Conversion Cost

The total cost of converting raw materials into finished goods, encompassing both labor and manufacturing overhead expenses.

Process Cost System

An accounting methodology used for homogeneous products, where the cost of producing each item is the same as the others, accumulating costs over a set period and dividing by the number of units produced.