In the long run, when there is immigration of labor and all domestic factors of production are mobile:
a. resources move out of the laborintensive industry into the other sectors of the economy.
b. the excess labor cannot be absorbed into the economy, and eventually workers will seek to emigrate.
c. the excess labor is absorbed, but it raises the unemployment rate and drives down wages, and the owners of capital are the clear winners.
d. the capitallabor ratio in each industry is unchanged, and the additional labor in the economy is fully employed.
Ans: d. the capitallabor ratio in each industry is unchanged, and the additional labor in the economy is fully employed.
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A tax of 20 cents per unit of imported garlic is an example of a(n)
A) specific tariff. B) ad valorem tariff. C) nominal tariff. D) effective protection tariff. E) a disadvantageous tariff.
Tie-in sales are most advantageous to the seller when
A) the demands for the two goods are negatively correlated. B) the demands for the two goods are positively correlated. C) the demands for the two goods are unrelated. D) there are economies of scope.