(2 points) Assume that a country produces only two goods: x and Y which both use land and labor as their only inputs. Good x is relatively land-intensive while good Y is relatively laborintensive. According to the Rybczynski theorem, a significant rise in immigration will cause the output of good Y to q, . (Circle the letter of the correct choice.)
a. increase by a smaller proportion than the increase in the size of the labor force.
b. increase by the same proportion as the increase in the size of the labor force.
(c) increase by a larger proportion than the increase in the size of the labor force.
d. decrease.
10. (2 points) Assume that a country produces only two goods: X and Y which both use land and labor as their only inputs.Good X is relatively land-intensive while good Y is relatively labor- intensive. According to the Rybczynski theorem, a significant rise in immigration will cause the output of good Y to .(Circle the letter of the correct choice.) 1 a. increase by a smaller proportion than the increase in the size of the labor force b. increase by the same proportion as the increase in the size of the labor force. increase by a larger proportion than the increase in the size of the labor force. d. decrease.