When we use the specific-factors model to study immigration, we assume that:
A) land is immobile internationally but capital and labor are internationally mobile.
B) labor is used to move between countries as well as industries, while still keeping capital and land specific to each industry.
C) land, labor, and capital are internationally mobile.
D) land, labor, and capital are internationally immobile, but capital and land are specific to each industry.

Question

Quizplus · Accepted Answer

In the specific-factors model, labor is assumed to be the only factor that is internationally mobile, while capital and land are considered specific to industries and immobile internationally. This allows us to analyze the impact of immigration on different industries and the overall economy.

When We Use the Specific-Factors Model to Study Immigration, We