A large increase in immigration into a country of limited land and resources would, in the short run, cause:
A)the marginal product of capital to fall.
B)the quality and the educational level of the labor force to decline.
C)rents and surplus profits to rise.
D)no change in the marginal product of labor.
E)all of the above.

Question

Quizplus · Accepted Answer

In the short run, a large increase in immigration into a country with limited land and resources would likely cause rents and surplus profits to rise due to increased demand for housing and possibly for certain goods and services. The other options do not directly result from a short-term increase in immigration.

A Large Increase in Immigration into a Country of Limited