![FIGURE 1-5](c05_fig05.jpg)
Shift in Home Production Possibilities Curve With the increase in labor at Home from immigration, the production possibilities frontier shifts outward and the output of both industries increases, from point A to point B. Output in both industries increases because of the short-run nature of the specific-factors model; in the short run, land and capital do not move between the industries, and the extra labor in the economy is shared between both industries.