Question 1

Why would a high-wage nation oppose immigration?

Accepted Answer

High-wage nations oppose immigration bec

Question 2

Human capital refers to

Accepted Answer

A) the accumulated knowledge and skills that allow a person to be productive. 
B) machinery that requires extensive human interaction to be productive. 
C) the accumulated financial assets of people. 
D) all of these things. 
A) the accumulated knowledge and skills that allow a person to be productive. 
B) machinery that requires extensive human interaction to be productive. 
C) the accumulated financial assets of people. 
D) all of these things.

Question 3

U.S. immigrants (legal and illegal)have

Accepted Answer

A) higher prison rates and crime rates than the native-born population. 
B) lower prison rates and crime rates than the native-born population. 
C) lower prison rates, but illegal immigrants have higher crime rates, than the native-born population. 
D) higher prison rates, but lower crime rates, than the native-born population. 
A) higher prison rates and crime rates than the native-born population. 
B) lower prison rates and crime rates than the native-born population. 
C) lower prison rates, but illegal immigrants have higher crime rates, than the native-born population. 
D) higher prison rates, but lower crime rates, than the native-born population.

Question 4

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.How many illegal immigrant workers will be hired at equilibrium?

Accepted Answer

A) 200,000 
B) 250,000 
C) 350,000 
D) 450,000 
A) 200,000 
B) 250,000 
C) 350,000 
D) 450,000

Question 5

The H1-B provision of immigration law

Accepted Answer

A) allows 65,000 high-skilled workers in specialty occupations to enter and work in the United States for six years. 
B) raised U.S. annual immigration quotas from 500,000 to 700,000. 
C) established a lottery for the admission of diversity immigrants into the United States. 
D) provided amnesty to over one million illegal immigrants in 1989-1991, allowing them to become legal citizens of the United States. 
A) allows 65,000 high-skilled workers in specialty occupations to enter and work in the United States for six years. 
B) raised U.S. annual immigration quotas from 500,000 to 700,000. 
C) established a lottery for the admission of diversity immigrants into the United States. 
D) provided amnesty to over one million illegal immigrants in 1989-1991, allowing them to become legal citizens of the United States.

Question 6

Studies show that the largest negative impact of illegal immigrants is on

Accepted Answer

A) the wages of native-born workers. 
B) the average wage in the U.S. 
C) employment opportunities of native-born workers. 
D) the wages of previous immigrants. 
A) the wages of native-born workers. 
B) the average wage in the U.S. 
C) employment opportunities of native-born workers. 
D) the wages of previous immigrants.

Question 7

Business income will decrease in the nation from which workers emigrate.

Accepted Answer

A) True 
 B)False

Question 8

The majority of international migrants move to countries relatively close to their home countries because close proximity reduces the cost of the move relative to anticipated benefits.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is an implicit cost of migration?

Accepted Answer

A) the cost of traveling to a new country 
B) having to adapt to a new culture 
C) paying application fees 
D) payment to an expediter 
A) the cost of traveling to a new country 
B) having to adapt to a new culture 
C) paying application fees 
D) payment to an expediter

Question 10

As a result of a major overhaul of the U.S. welfare system in 1996,

Accepted Answer

A) benefits were expanded for immigrants. 
B) immigrants are denied benefits for their first five years in the U.S. 
C) immigrants are denied benefits for their first three years in the U.S. 
D) more immigrants qualified for welfare benefits. 
A) benefits were expanded for immigrants. 
B) immigrants are denied benefits for their first five years in the U.S. 
C) immigrants are denied benefits for their first three years in the U.S. 
D) more immigrants qualified for welfare benefits.

Question 11

Illegal immigration tends to

Accepted Answer

A) increase average wages and employment where illegal workers are complements to domestic-born workers. 
B) increase average wages and employment where illegal workers are substitutes for domestic-born workers. 
C) increase average wages and employment whether illegal workers are complements to or substitutes for domestic-born workers. 
D) reduce average wages and employment whether illegal workers are complements to or substitutes for domestic-born workers. 
A) increase average wages and employment where illegal workers are complements to domestic-born workers. 
B) increase average wages and employment where illegal workers are substitutes for domestic-born workers. 
C) increase average wages and employment whether illegal workers are complements to or substitutes for domestic-born workers. 
D) reduce average wages and employment whether illegal workers are complements to or substitutes for domestic-born workers.

Question 12

Removing all illegal immigrants would expand domestic-born employment by an amount equal to the number of illegal immigrants removed.

Accepted Answer

A) True 
 B)False

Question 13

Refer to the figure. An increase in the number of highly motivated and skilled potential immigrants will

Accepted Answer

A) reduce MB and increase MC, lowering the optimal quantity of immigrants. 
B) increase MB and reduce MC, raising the optimal quantity of immigrants. 
C) increase both MB and MC, and the effect on the optimal quantity is uncertain. 
D) reduce both MB and MC, and the effect on the optimal quantity is uncertain. 
A) reduce MB and increase MC, lowering the optimal quantity of immigrants. 
B) increase MB and reduce MC, raising the optimal quantity of immigrants. 
C) increase both MB and MC, and the effect on the optimal quantity is uncertain. 
D) reduce both MB and MC, and the effect on the optimal quantity is uncertain.

Question 14

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

Accepted Answer

A) $4.00 and 50,000. 
B) $4.00 and 60,000. 
C) $6.50 and 60,000. 
D) $4.00 and 70,000. 
A) $4.00 and 50,000. 
B) $4.00 and 60,000. 
C) $6.50 and 60,000. 
D) $4.00 and 70,000.

Question 15

The optimal level of immigration occurs where marginal benefit is at its greatest.

Accepted Answer

A) True 
 B)False

Question 16

Native-born workers may not be harmed by immigration if

Accepted Answer

A) they are complementary resources to immigrant workers. 
B) they are substitute resources for immigrant workers. 
C) demand for their labor is elastic. 
D) immigrants remit their earnings to their home countries. 
A) they are complementary resources to immigrant workers. 
B) they are substitute resources for immigrant workers. 
C) demand for their labor is elastic. 
D) immigrants remit their earnings to their home countries.

Question 17

Suppose that Rosa is considering migration to another country. To move, she will have to spend $5,000 on transportation and $4,000 in application and other processing fees. Rosa's stream of future earnings in her home country is $500,000. She expects to earn a stream of future earnings of $800,000 in another country. Based on this information, Rosa's implicit cost of migrating is

Accepted Answer

A) $9,000. 
B) $500,000. 
C) $509,000. 
D) $5,000. 
A) $9,000. 
B) $500,000. 
C) $509,000. 
D) $5,000.

Question 18

Which of the following groups has the highest proportion of unskilled illegal immigrants in the U.S.?

Accepted Answer

A) agricultural workers 
B) construction workers 
C) cleaning workers 
D) food preparers 
A) agricultural workers 
B) construction workers 
C) cleaning workers 
D) food preparers

Question 19

Suppose the elasticity of labor demand is 0.6. Then a decrease in the wage rate will

Accepted Answer

A) decrease total wage income. 
B) increase total wage income. 
C) have no impact on total wage income. 
D) have an indeterminate impact on total wage income. 
A) decrease total wage income. 
B) increase total wage income. 
C) have no impact on total wage income. 
D) have an indeterminate impact on total wage income.

Question 20

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,

Accepted Answer

A) migration will cause the average level of wages to fall in Alphania. 
B) no migration will occur. 
C) fg workers will move from Betania to Alphania. 
D) GF workers will move from Alphania to Betania. 
A) migration will cause the average level of wages to fall in Alphania. 
B) no migration will occur. 
C) fg workers will move from Betania to Alphania. 
D) GF workers will move from Alphania to Betania.

Exam 25: Immigration

Why would a high-wage nation oppose immigration?

Human capital refers to

U.S. immigrants (legal and illegal)have

The H1-B provision of immigration law

Studies show that the largest negative impact of illegal immigrants is on

Business income will decrease in the nation from which workers emigrate.

The majority of international migrants move to countries relatively close to their home countries because close proximity reduces the cost of the move relative to anticipated benefits.

Which of the following is an implicit cost of migration?

As a result of a major overhaul of the U.S. welfare system in 1996,

Illegal immigration tends to

Removing all illegal immigrants would expand domestic-born employment by an amount equal to the number of illegal immigrants removed.

Refer to the figure. An increase in the number of highly motivated and skilled potential immigrants will

The optimal level of immigration occurs where marginal benefit is at its greatest.

Native-born workers may not be harmed by immigration if

Which of the following groups has the highest proportion of unskilled illegal immigrants in the U.S.?

Suppose the elasticity of labor demand is 0.6. Then a decrease in the wage rate will

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