Q. In the 2-factor, 2 good Heckscher-Ohlin model, an influx of workers from across the border would
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(A)
Moves the point of production along the production possibility curve
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(B)
Shifts the production possibility curve outward, and increase the production of both good
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(C)
Shift the production possibility curve outward and decrease the production of the Labor-intensive product
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(D)
Shift the production possibility curve outward and decrease the production of the capital-intensive product.
✅ Correct Answer: (D)
Shift the production possibility curve outward and decrease the production of the capital-intensive product.