What is the effect of immigration in the long run?
a. Output will increase.
b. Factor prices will increase.
c. There will be no change in factor prices.
d. There will be an increase in output but no change in factor prices.
Answer: d. There will be an increase in output but no change in factor prices.
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Referring to Table 12.2, if the nominal interest rate is 8.5 percent and there is no inflation, which investments will be undertaken?
A) D, E B) E C) C, E D) none of the above
The __________ is calculated as the face value minus the purchase price divided by the face value
A) coupon equivalent yield B) bond equivalent yield C) yield on a discount basis D) yield to maturity
The following table provides information about production at the XYZ-TV Company. Number of WorkersTVs ProducedMarginal ProductValue of Marginal Product00------13535$35,00026833$33,00039931$31,000412829$29,000515527$27,000How many workers will XYZ-TV Company hire if the going wage for TV production workers is $60,000?
A. 0 B. More than 5 C. 4 D. 5
If businesses expect the economic activity to expand
A. the planned investment function relating investment to the interest rate will shift to the left. B. the planned investment function relating investment to the interest rate will shift to the right. C. the planned investment function relating investment to the interest rate will steepen. D. the planned investment function relating investment to the interest rate will remain unchanged, but will move downward along the curve.