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Consider an Economy That Only Produces Steel and

Question 54

Multiple Choice

Consider an economy that only produces steel and
Shoes; steel is capital intensive and shoes are labor
Intensive.How will emigration of labor from this
Economy affect the marginal productivity of labor?


A) It will fall.
B) It will not change.
C) It will rise.
D) It will fall in the short run and rise in the long run.

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