In the Long Run, Immigration Will Shift the Sending Country's

question 102

Multiple Choice

In the long run, immigration will shift the sending country's production possibilities frontier inward. This shift will cause:

• A) a larger decline in the potential output of the capital-intensive good.
• B) a larger decline in the potential output of the labor-intensive good.
• C) equal declines in the potential output of both the labor-intensive and the capital-intensive good.
• D) a decline in the potential output of the labor-intensive good and an increase in the potential output of the capital-intensive good.

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