In the US, 30 thousand people are employed in whiskey production and 200 thousand people in motorcycle production, which is capital intensive. After opening up to trade, in the long run US economy-wide relative demand for labor converges to the relative labor demand curve of the whiskey production industry O converges to the relative labor demand curve of the motorcycle production industry O remains where it was may follow any of the other three options

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter12: The Supply Of And Demand For Productive Resources
Section: Chapter Questions
Problem 9CQ
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In the US, 30 thousand people are employed in whiskey production and
200 thousand people in motorcycle production, which is capital
intensive.
After opening up to trade, in the long run US economy-wide relative
demand for labor
O converges to the relative labor demand curve of the whiskey production
industry
O converges to the relative labor demand curve of the motorcycle production
industry
remains where it was
O may follow any of the other three options
Transcribed Image Text:In the US, 30 thousand people are employed in whiskey production and 200 thousand people in motorcycle production, which is capital intensive. After opening up to trade, in the long run US economy-wide relative demand for labor O converges to the relative labor demand curve of the whiskey production industry O converges to the relative labor demand curve of the motorcycle production industry remains where it was O may follow any of the other three options
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