Consider the hypotheticals we did for the He theory in immigration. A higher L-K
ID: 1204073 • Letter: C
Question
Consider the hypotheticals we did for the He theory in immigration. A higher L-K ratio (from some initial level). Which of the following is likely to take place? the MPL falls the MPL rises the MPK falls the MPK rises both b and c are correct both a and d are correct Consider the hypotheticals we did for the He theory in immigration. A higher L-K ratio (from some initial level). Which of the following is most correct regarding the outcome for capital-owners and workers? capital-owners and workers both see their purchasing power fall capital-owners see their purchasing power fall, workers see their purchasing power rise capital-owners see their purchasing power rise, workers see their purchasing power fall capital-owners and workers both see their purchasing power rise Suppose we introduce a scenario that says immigration mostly consists of high skilled labor and impacts the Home country. Which of the following statements is most true? in the SR, the VMPL curve in manufacturing will pivot SW in the SR, the VMPL curve in agriculture will pivot NW in the LR, workers will get more productive and see their purchasing power rise in the LR, capital-owners will get more productive and see their purchasing power rise Which group, based on our lectures, is most likely to fdvoi immigration policies for all intention purposes? workers in the LR workers in the SR capital owners in the LR capital-owners in the SRExplanation / Answer
a) A higher L by K ratio means that the MPL will fall eventually showing diminishing returns
b) A higher L by K ratio means workers will see a rise in purchasing power inducing them to migrate from one place to another .
c) due to rise in demand for high skilled labor there will be a rise in productivity of labour with rise in purchasing power
d) workers in the long run will improve from the immigration policies .