Asked by Cynthia Tyler on May 31, 2024
Verified
If immigration increases the productivity of domestic workers, then it
A) decreases the return on capital.
B) means that immigrant workers and domestic workers are substitutes.
C) means that immigrant workers are entering low-wage occupations.
D) increases the return on capital.
Return on Capital
A measure of a company's profitability, calculated as the profit generated by its capital investment, often expressed as a percentage.
Immigration
Establishing permanent residence in a nation other than the one where you originally belong.
Productivity
The measure of how efficiently production inputs, such as labor and capital, are converted into outputs, i.e., goods and services.
- Understand the economic impact of immigration on domestic workers' productivity and return on capital.
Verified Answer
ZK
Zybrea KnightJun 06, 2024
Final Answer :
D
Explanation :
Immigration that increases the productivity of domestic workers can lead to higher overall economic output. This, in turn, can increase the demand for capital as businesses expand to take advantage of the more productive workforce, thereby increasing the return on capital.
Learning Objectives
- Understand the economic impact of immigration on domestic workers' productivity and return on capital.