What is the overall longrun impact of labor immigration on returns to factors of production?
a. Returns to labor will increase and returns to capital will decrease.
b. Returns to labor and returns to capital will both increase.
c. Both relative and absolute returns to factors of production will not change.
d. Both relative and absolute returns to factors of production will increase.
Answer: c. Both relative and absolute returns to factors of production will not change.
You might also like to view...
Economies of scale can be caused by
a. all of the following b. short-run increases in marginal productivity c. the use of larger, more specialized machines d. higher information costs as a firm expands e. bureaucratic red tape as a firm expands
A pizza shop owner needs to buy a pizza oven and is deciding between a new one and a used one. If he buys an older used one it will generate $4,000 of net income for 3 years. If he buys a new one it will generate $5,000 of net income for 4 years. If the
interest rate is 10%, what is the difference in value between the two ovens? (Assume that each year's revenue is received at the end of the year.) a. $793.83 b. $2,577.10 c. $6,252.25 d. $2,777.78 e. $1,000