Assume a country produces only wine and cups. Both wine and cup production use land and labor as their only inputs. Wine production is relatively land-intensive while cup production is relatively labor-intensive. According to the Rybczynski theorem, a significant rise in immigration is most likely to lead to
A. an increase in wine production by a greater proportion than the increase in the production of cups.
B. an increase in the production of cups by a greater proportion than the increase in the size of the labor force due to immigration.
C. an increase in the production of both wine and cups.
D. an increase in wine production by a greater proportion than the increase in the size of the labor force due to immigration.
Answer: B
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