wages with immigration
1. In the short run what happens to the wages with immigration? What happens to the output of the labor intensive and capital intensive products? 2. In the long run, what happens to wages with immigration? What happens to the return on capital? 3. Does output increase in the same manner in the long run as in the short run with immigration? 4. What does the Rybczynski theorem? Explain it in terms of question 3 above. 5. What does factor price insensitivity mean? 6. Answer questions 1 and 2 above with respect to movement of capital.
1. In the short run what happens to the wages with immigration? What happens to the output of the labor intensive and capital intensive products? 2. In the long run, what happens to wages with immigration? What happens to the return on capital? 3. Does output increase in the same manner in the long run as in the short run with immigration? 4. What does the Rybczynski theorem? Explain it in terms of question 3 above. 5. What does factor price insensitivity mean? 6. Answer questions 1 and 2 above with respect to movement of capital.
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