In an economy with two industries, what are the long-run effects of increased immigration upon employment in each industry?
A) Employment will increase in both industries.
B) There will be no change in employment in either industry.
C) Employment will increase in one and decrease in the other.
D) Wages will fall in both industries.

Question

Quizplus · Accepted Answer

Increased immigration can lead to increases in the supply of labor, leading to lower wages in both industries. However, the long-run effects may vary depending on the relative demand for labor in each industry. If one industry has a higher demand for labor than the other, then employment may increase in that industry while decreasing in the other industry. Therefore, the answer is C.

In an Economy with Two Industries, What Are the Long-Run