Question 1

The simple immigration model assumes that the capital stock is constant in each country. If this assumption is relaxed, then the

Accepted Answer

A)  rise in business income in the low-wage country will increase the return on capital, which will increase the demand for labor.
B)  fall in business income in the low-wage country will decrease the return on capital, which will decrease the demand for labor.
C)  rise in business income in the low-wage country will decrease the return on capital, which will decrease the demand for labor.
D)  fall in business income in the low-wage country will increase the return on capital, which will increase the demand for labor.E) A) and C)
F) All of the above

Question 2

"Backflows" occur when

Accepted Answer

A)  two countries send immigrants to each other in approximately equal numbers.
B)  physical capital flows into a country that has lost labor due to migration.
C)  immigrants send financial payments back to family in their country of origin.
D)  migrants return to their home country.E) None of the above
F) All of the above

Question 3

Unimpeded immigration between two nations tends to

Accepted Answer

A)  increase business income in both nations.
B)  increase business income in the nation receiving immigrants but reduce it in the nation experiencing emigration.
C)  reduce business income in the nation receiving immigrants but increase it in the nation experiencing emigration.
D)  reduce business income in both nations.E) A) and C)
F) B) and C)

Question 4

If immigration increases the productivity of domestic workers, then it

Accepted Answer

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.E) A) and D)
F) C) and D)

Question 5

d represents the supply of domestic-born (and legal immigrant) workers; (3) Sₜ represents the total supply of workers in this labor market (Sd plus illegal immigrants) ; and (4) unless otherwise stated, illegal immigration is not effectively blocked by the government.Assume initially that government does not effectively block illegal immigration. If the government then finds a way to prevent all illegal immigrants from working in this labor market, A) 10,000 domestic-born workers will gain employment at the expense of 20,000 illegal immigrants. B) 20,000 domestic-born workers will gain employment at the expense of 20,000 illegal immigrants. C) 10,000 domestic-born workers will gain employment at the expense of 70,000 illegal immigrants. D) 10,000 domestic-born workers will gain employment at the expense of 50,000 illegal immigrants." class="answers-bank-image d-inline" rel="preload" > Assumptions: (1) Employers in this market are willing and able to ignore minimum wage laws; (2) Sd represents the supply of domestic-born (and legal immigrant) workers; (3) Sₜ represents the total supply of workers in this labor market (Sd plus illegal immigrants) ; and (4) unless otherwise stated, illegal immigration is not effectively blocked by the government.Assume initially that government does not effectively block illegal immigration. If the government then finds a way to prevent all illegal immigrants from working in this labor market,

Accepted Answer

A)  10,000 domestic-born workers will gain employment at the expense of 20,000 illegal immigrants.
B)  20,000 domestic-born workers will gain employment at the expense of 20,000 illegal immigrants.
C)  10,000 domestic-born workers will gain employment at the expense of 70,000 illegal immigrants.
D)  10,000 domestic-born workers will gain employment at the expense of 50,000 illegal immigrants.E) A) and D)
F) A) and C)

Question 6

d represents the supply of domestic-born (and legal immigrant) workers; (3) Sₜ represents the total supply of workers in this labor market (Sd plus illegal immigrants) ; and (4) unless otherwise stated, illegal immigration is not effectively blocked by the government.If the government effectively prevents illegal immigrants from working in this labor market, the equilibrium wage and level of employment are, respectively, A) $5.50 and 250,000. B) $5.50 and 350,000. C) $8.00 and 350,000. D) $5.50 and 450,000." class="answers-bank-image d-inline" rel="preload" > Assumptions: (1) Employers in this market are willing and able to ignore minimum wage laws; (2) Sd represents the supply of domestic-born (and legal immigrant) workers; (3) Sₜ represents the total supply of workers in this labor market (Sd plus illegal immigrants) ; and (4) unless otherwise stated, illegal immigration is not effectively blocked by the government.If the government effectively prevents illegal immigrants from working in this labor market, the equilibrium wage and level of employment are, respectively,

Accepted Answer

A)  $5.50 and 250,000.
B)  $5.50 and 350,000.
C)  $8.00 and 350,000.
D)  $5.50 and 450,000.E) A) and B)
F) C) and D)

Question 7

Economic theory suggests that immigration should be allowed into a country until the marginal benefit of the last immigrant is zero.

Accepted Answer

A) True 
 B)False

Question 8

In 2017, China overtook Mexico to become the number one country of origin of U.S. legal immigrants.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is least likely to be considered economic immigration?

Accepted Answer

A)  Bob migrates to Canada to improve his access to health care.
B)  Manuela migrates to the United States to open an authentic Italian cooking school.
C)  Myklos migrates to Switzerland because the public pension system is more generous than in his home country.
D)  Alexander migrates to the United States because his political writings are censored in his home country.E) All of the above
F) B) and D)

Question 10

Human capital refers to the

Accepted Answer

A)  stock of knowledge and skills that enables a person to be productive and earn income.
B)  number of workers in a country's labor force.
C)  number of labor hours worked in a country.
D)  schools, highways, and other infrastructure that increases labor productivity.E) A) and B)
F) B) and C)

Question 11

Older workers are

Accepted Answer

A)  much more likely to migrate than younger workers because older workers have lower moving costs.
B)  much less likely to migrate than younger workers because older workers are more likely to have children at home.
C)  much more likely to migrate than younger workers because older have lower implicit costs of migrating.
D)  much more likely to migrate than younger workers because younger workers have stronger roots and ties to the local community.E) A) and C)
F) B) and C)

Question 12

A "backflow" refers to

Accepted Answer

A)  unauthorized aliens who enter an industrialized nation looking for work.
B)  legal aliens who enter an industrialized nation looking for work.
C)  migrants who enter a series of industrialized nations looking for work.
D)  migrants who return to their home countries after seeking work in another country.E) B) and D)
F) All of the above

Question 13

With labor migration, the country of origin experiences

Accepted Answer

A)  an increase in output and a rising wage rate.
B)  an increase in output and a falling wage rate.
C)  a decrease in output and a falling wage rate.
D)  a decrease in output and a rising wage rate.E) A) and B)
F) None of the above

Question 14

Illegal immigration can result in higher wages for domestic-born workers who are complementary inputs.

Accepted Answer

A) True 
 B)False

Question 15

Other things equal, the optimal quantity of immigrants will be greater, the

Accepted Answer

A)  higher the unemployment rate in the destination nation.
B)  greater the degree of substitutability between immigrant and domestic-born workers.
C)  greater the degree of complementarity between immigrant and domestic-born workers.
D)  lower the rate at which immigrants can be absorbed.E) B) and C)
F) C) and D)

Question 16

One effect of immigration is to

Accepted Answer

A)  decrease a nation's total output and productive capacity.
B)  make capital resources less scarce relative to labor.
C)  decrease economic efficiency on a worldwide basis.
D)  increase the wage bill in a nation experiencing immigration if the demand for labor is elastic.E) B) and C)
F) All of the above

Question 17

Assumptions: (1) The demand for labor in Alphania and Betania are as shown by Dₐ and Dᵦ , respectively; (2) Alphania's native labor force is F and that of Betania is g; (3) wage L in Alphania is equal to wage m in Betania; and (4) full employment exists in both countries. If migration is costless and unimpeded, the absolute wage bill will necessarily

Accepted Answer

A)  increase in Alphania if its labor demand curve is elastic.
B)  increase in Betania if its labor demand curve is elastic.
C)  decrease in Betania.
D)  increase in Betania.E) None of the above
F) A) and D)

Question 18

In the accompanying graphs, the pre-migration labor force in country A is 0d and in country B it is 0u. Domestic output in country B will, after the emigration of labor,

Accepted Answer

A)  increase by area qrs.
B)  increase by area qtus.
C)  decrease by area qrs.
D)  decrease by area qtus.E) A) and C)
F) A) and D)

Question 19

Illegal immigrants make up about what percentage of all construction workers?

Accepted Answer

A)  14 percent
B)  5 percent
C)  26 percent
D)  53 percentE) A) and B)
F) None of the above

Question 20

Which of the following will most likely cause backflows?

Accepted Answer

A)  poor information that leads a migrant to overestimate the net benefits of migration
B)  high moving costs
C)  falling wages in a migrant's origin nation
D)  high levels of skill transferabilityE) A) and D)
F) B) and C)

Exam 25: Immigration

Correct Answer
verified

Which of the following is least likely to be considered economic immigration?

Correct Answer
verified

Human capital refers to the

Correct Answer
verified

In the accompanying graphs, the pre-migration labor force in country A is 0d and in country B it is 0u. Domestic output in country B will, after the emigration of labor,

Correct Answer
verified

If immigration increases the productivity of domestic workers, then it

Correct Answer
verified

Illegal immigration can result in higher wages for domestic-born workers who are complementary inputs.

Correct Answer
verified

One effect of immigration is to

Correct Answer
verified

"Backflows" occur when

Correct Answer
verified

With labor migration, the country of origin experiences

Correct Answer
verified

Correct Answer
verified

Which of the following will most likely cause backflows?

Correct Answer
verified

In 2017, China overtook Mexico to become the number one country of origin of U.S. legal immigrants.

Correct Answer
verified

Other things equal, the optimal quantity of immigrants will be greater, the

Correct Answer
verified

Correct Answer
verified

Illegal immigrants make up about what percentage of all construction workers?

Correct Answer
verified

The simple immigration model assumes that the capital stock is constant in each country. If this assumption is relaxed, then the

Correct Answer
verified

A "backflow" refers to

Correct Answer
verified

Older workers are

Correct Answer
verified

Unimpeded immigration between two nations tends to

Correct Answer
verified

Economic theory suggests that immigration should be allowed into a country until the marginal benefit of the last immigrant is zero.

Correct Answer
verified

Exam 25: Immigration

Correct AnswerverifiedShow Answer

Which of the following is least likely to be considered economic immigration?

Correct AnswerverifiedShow Answer

Human capital refers to the

Correct AnswerverifiedShow Answer

In the accompanying graphs, the pre-migration labor force in country A is 0d and in country B it is 0u. Domestic output in country B will, after the emigration of labor,

Correct AnswerverifiedShow Answer

If immigration increases the productivity of domestic workers, then it

Correct AnswerverifiedShow Answer

Illegal immigration can result in higher wages for domestic-born workers who are complementary inputs.

Correct AnswerverifiedShow Answer

One effect of immigration is to

Correct AnswerverifiedShow Answer

"Backflows" occur when

Correct AnswerverifiedShow Answer

With labor migration, the country of origin experiences

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following will most likely cause backflows?

Correct AnswerverifiedShow Answer

In 2017, China overtook Mexico to become the number one country of origin of U.S. legal immigrants.

Correct AnswerverifiedShow Answer

Other things equal, the optimal quantity of immigrants will be greater, the

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Illegal immigrants make up about what percentage of all construction workers?

Correct AnswerverifiedShow Answer

The simple immigration model assumes that the capital stock is constant in each country. If this assumption is relaxed, then the

Correct AnswerverifiedShow Answer

A "backflow" refers to

Correct AnswerverifiedShow Answer

Older workers are

Correct AnswerverifiedShow Answer

Unimpeded immigration between two nations tends to

Correct AnswerverifiedShow Answer

Economic theory suggests that immigration should be allowed into a country until the marginal benefit of the last immigrant is zero.

Correct AnswerverifiedShow Answer

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