Question
Assume a country produces only wine and guns. Both wine and gun production use land and labor as their only inputs. Wine production is relatively
Assume a country produces only wine and guns. Both wine and gun production use land and labor as their only inputs. Wine production is relatively land-intensive while gun production is relatively labor-intensive. According to the Rybczynski theorem, a significant rise in immigration is most likely to lead to:
Group of answer choices
an increase in the production of both wine and guns.
an increase in wine production by a greater proportion than the increase in the size of the labor force due to immigration.
an increase in the production of guns by a greater proportion than the increase in the size of the labor force due to immigration.
an increase in wine production by a greater proportion than the increase in the production of guns.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started