In the specific-factors model, immigration causes:
A) a rightward shift in the receiving country's production possibilities frontier.
B) a leftward shift in the receiving country's production possibilities frontier.
C) no change in the receiving country's production possibilities frontier.
D) a rightward shift in the sending country's production possibilities frontier.

Question

Quizplus · Accepted Answer

Immigration increases the labor force in the receiving country, which can enhance its productive capacity, leading to a rightward shift in its production possibilities frontier. This reflects the country's increased ability to produce goods and services.

In the Specific-Factors Model, Immigration Causes