How can migration impact a country's comparative advantage according to the concept of the Production Possibilities Frontier (PPF)?

• A. Migration has no effect on comparative advantage because resources remain unchanged.
• B. Migration always reduces a country's comparative advantage in all goods.
• C. Migration only affects absolute advantage, not comparative advantage.
• D. Migration can alter the labor force, potentially shifting the PPF and changing comparative advantage.

Answer: (D)

Verified step by step guidance

1. Understand the concept of the Production Possibilities Frontier (PPF): it represents the maximum combinations of two goods that a country can produce given its resources and technology.
2. Recall that comparative advantage depends on the relative opportunity costs of producing goods, which are influenced by the availability and productivity of resources such as labor.
3. Recognize that migration changes the size and composition of the labor force, which is a key resource in production, potentially increasing or decreasing the capacity to produce certain goods.
4. Analyze how a change in the labor force can shift the PPF outward or inward, or change its shape, reflecting changes in production capabilities and opportunity costs.
5. Conclude that because comparative advantage depends on relative opportunity costs, migration can alter these costs by changing resource availability, thus potentially changing a country's comparative advantage.