What is the long-run effect of immigration on capital use in the receiving country?
A) There will be no change because the remaining capital is not mobile.
B) Capital will move to the capital-intensive industry.
C) The return to capital (rental) will fall.
D) Capital will move to the labor-intensive industry.

Question

Quizplus · Accepted Answer

In the long run, immigration increases the labor supply, which can lead to capital moving to labor-intensive industries to maintain the balance between labor and capital, optimizing production.

What Is the Long-Run Effect of Immigration on Capital Use