According to the Rybczynski theorem, immigration will
Cause:
A)an increase in the output of the laborintensive good and a decrease in the output of the capitalintensive
Good in the receiving country.
B)an increase in the output of both the laborintensive and the capitalintensive goods in the receiving
Country.
C)a decrease in the output of the laborintensive good and an increase in the output of the capitalintensive
Good in the receiving country.
D)decreases in the output of both the laborintensive and the capitalintensive good in the receiving country.

Question

According to the Rybczynski theorem, immigration will
Cause:
A)an increase in the output of the labor­intensive good and a decrease in the output of the capital­intensive
Good in the receiving country.
B)an increase in the output of both the labor­intensive and the capital­intensive goods in the receiving
Country.
C)a decrease in the output of the labor­intensive good and an increase in the output of the capital­intensive
Good in the receiving country.
D)decreases in the output of both the labor­intensive and the capital­intensive good in the receiving country.

Quizplus · Accepted Answer

The Rybczynski theorem states that an increase in the supply of a factor (like labor through immigration) will increase the output of the good that uses that factor intensively and decrease the output of the other good.

According to the Rybczynski Theorem, Immigration Will