Consider a Hypothetical Economy in Which Only Computers and Shoes

question 95

Multiple Choice

Consider a hypothetical economy in which only computers and shoes are produced and in which computer production is capital intensive compared with shoe production. If two resources are being used, labor and capital, then any increase in immigration in the long run:

• A) will cause the capital-labor ratio to increase in the computer industry.
• B) will cause the capital-labor ratio to increase in the shoe industry.
• C) will cause the capital-labor ratio to increase in both the industries.
• D) will increase the number of workers employed in the shoe industry.

---

Definitions:

Balance Sheet

A financial record that itemizes a company's assets, liabilities, and the equity of its shareholders at a certain moment in time.

Delivery Truck

A vehicle used by companies to transport goods from warehouses to retail locations or directly to consumers.

Adjusting Entries

Entries compiled at the termination of an accounting interval aiming to apportion income and expenditure to their rightful temporal occurrence.

Trial Balance

A financial spreadsheet where the totals of all ledger balances are gathered into columns for debits and credits, ensuring these totals match.