In the short-run, immigration tends to Group of answer choices benefit workers in one sector of the economy and hurt those in the other Increase wage in both sectors of the economy benefit specific factor owners Not affect factor prices
Question
In the short-run, immigration tends to Group of answer choices
benefit workers in one sector of the economy and hurt those in the other
Increase wage in both sectors of the economy
benefit specific factor owners
Not affect factor prices
Solution
In the short-run, immigration tends to benefit specific factor owners. Here's why:
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When immigrants enter a country, they typically bring with them different skills and abilities. Some may be highly skilled in certain sectors, while others may be less skilled but willing to work in sectors that are less desirable to native workers.
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These immigrants will seek employment in the sectors where their skills are most needed or where there is less competition from native workers. This increases the supply of labor in those sectors.
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The increased supply of labor can benefit the owners of factors of production in those sectors. For example, if the supply of labor increases in the agricultural sector, farm owners may benefit because they can hire workers at lower wages.
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However, this does not mean that all sectors or all workers benefit equally. In sectors where the supply of labor increases significantly, wages may fall, hurting native workers in those sectors. Similarly, in sectors where the supply of labor does not increase, wages may not change much.
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Therefore, in the short-run, immigration tends to benefit specific factor owners - those who own the factors of production in the sectors where the supply of labor increases. But the effects can vary across different sectors and groups of workers.
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