For the Sending Country, What Will Be the Long-Run Effects

question 23

Multiple Choice

For the sending country, what will be the long-run effects of immigration on wages and the return to capital?

• A) The wage will increase, and the return to capital will decrease.
• B) The wage will decrease, and the return to capital will increase.
• C) Both the wage and the return to capital will increase.
• D) There will be no change in the wage and the return to capital.

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Definitions:

Solvency Ratios

Financial ratios used to assess a company's ability to meet its long-term debts and obligations, indicating financial health and stability.

Liquidity Ratio

A financial metric that measures a company's ability to pay off its short-term liabilities with its short-term assets.

Profitability Ratio

A financial metric used to assess a business's ability to generate earnings compared to its expenses and other relevant costs incurred during a specific period of time.

Solvency Ratio

A financial metric used to measure a company's ability to meet its long-term debts and financial obligations.