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Consider an Economy That Only Produces Steel and Shoes; Steel

Question 41

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 in the long run?


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

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