According to the Rybczynski Theorem, Immigration Will Cause

question 64

Multiple Choice

According to the Rybczynski theorem, immigration will cause:

• A) an increase in the output of the labor-intensive good and a decrease in the output of the capital-intensive good in the receiving country.
• B) an increase in the output of both the labor-intensive and the capital-intensive goods in the receiving country.
• C) a decrease in the output of the labor-intensive good and an increase in the output of the capital-intensive good in the receiving country.
• D) a decrease in the output of both the labor-intensive and the capital-intensive good in the receiving country.

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Definitions:

Demand Curve

A visual diagram showing the correlation between an item's price and the amount of it that consumers want to buy.

Profit Maximized

Profit maximized refers to a scenario where a firm achieves the highest possible profit from its operations, where marginal costs equal marginal revenue.

Marginal Profit

Marginal profit refers to the additional profit a company gains from selling one more unit of a good or service.

Marginal Revenue

The additional income gained by selling one more unit of a product or service.