question archive Assume that Turkey receives an inflow of Syrian immigrants
Assume that Turkey receives an inflow of Syrian immigrants
Subject:BusinessPrice: Bought3
Assume that Turkey receives an inflow of Syrian immigrants. Suppose two factors (labor and capital) are used in the production in two industries (shoe and computer). Further assume that computer are capital intensive as compared with shoe. Use the long-run model to answer the following questions.
a) With the impact of the inflow of Syrian immigrants on Turkey (with output of shoes (computers) on the vertical (horizontal) axis) what happens to the output of each good?
b) What happens to capital and labor of each good? How has wage changed in terms of shoes and computers?
