Assume a country produces only wine and guns. Both wine and gun production use land and labor as their only inputs. Wine production is relatively land-intensive while gun 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 the production of both wine and guns.
B) an increase in wine production by a greater proportion than the increase in the size of the labor force due to immigration.
C) an increase in the production of guns by a greater proportion than the increase in the size of the labor force due to immigration.
D) an increase in wine production by a greater proportion than the increase in the production of guns.
Correct Answer:
Verified
Q10: Assume that a large capital-abundant country trades
Q11: In the figure given below, we
Q12: In international trade jargon, an economy is
Q13: Suppose a small country experiences economic growth
Q14: Which of the following statements is true?
A)Increases
Q16: If trade is consistent with the H-O
Q17: Suppose country X partially specializes in the
Q18: In the figure given below, we
Q19: The rapid accumulation of capital and worker
Q20: Suppose country X partially specializes in the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents