Question 1

Suppose the elasticity of labor demand is 1.4. 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 2

Voluntary migration of skilled craft workers from low-paying to high-paying nations is most likely to be opposed by

Accepted Answer

A)  business groups in the high-paying nations. 
B)  craft workers who stay in the low-paying nations. 
C)  industrial unions in the high-paying nations. 
D)  craft unions in the high-paying nations. 
A)  business groups in the high-paying nations. 
B)  craft workers who stay in the low-paying nations. 
C)  industrial unions in the high-paying nations. 
D)  craft unions in the high-paying nations.

Question 3

The U.S. Census Bureau estimates that more than one million illegal immigrants enter the United States each year.

Accepted Answer

A) True 
 B)False

Question 4

A nation can maximize the net benefits from immigration by

Accepted Answer

A)  contracting immigration until the extra welfare cost for taxpayers is zero. 
B)  expanding immigration until its marginal benefits equal its marginal costs. 
C)  expanding immigration, because it benefits society with a greater supply of products and increased demand for them. 
D)  contracting immigration, because the benefits are minor and it reduces the wage rates of domestic workers. 
A)  contracting immigration until the extra welfare cost for taxpayers is zero. 
B)  expanding immigration until its marginal benefits equal its marginal costs. 
C)  expanding immigration, because it benefits society with a greater supply of products and increased demand for them. 
D)  contracting immigration, because the benefits are minor and it reduces the wage rates of domestic workers.

Question 5

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 6

Economic theory suggests that the optimal level of immigration in the United States

Accepted Answer

A)  is zero. 
B)  occurs where the marginal benefit of the last immigrant equals or just exceeds the marginal cost of the last immigrant. 
C)  occurs where the marginal benefit of the last immigrant equals or just exceeds zero. 
D)  occurs at the level where the difference between the marginal benefit and marginal cost of the last immigrant is maximized. 
A)  is zero. 
B)  occurs where the marginal benefit of the last immigrant equals or just exceeds the marginal cost of the last immigrant. 
C)  occurs where the marginal benefit of the last immigrant equals or just exceeds zero. 
D)  occurs at the level where the difference between the marginal benefit and marginal cost of the last immigrant is maximized.

Question 7

About of recent annual population growth in the United States is the result of immigration.

Accepted Answer

A)  one-tenth 
B)  one-fifth 
C)  one-third 
D)  one-half 
A)  one-tenth 
B)  one-fifth 
C)  one-third 
D)  one-half

Question 8

What is the quota for "diversity immigrants" into the U.S.?

Accepted Answer

A)  1 million per year 
B)  500,000 per year 
C)  50,000 per year 
D)  25,000 per year 
A)  1 million per year 
B)  500,000 per year 
C)  50,000 per year 
D)  25,000 per year

Question 9

The main driver of economic immigration is the opportunity to improve earnings and living standards.

Accepted Answer

A) True 
 B)False

Question 10

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 11

The primary motivation for economic immigration is

Accepted Answer

A)  the prospect of paying lower prices for goods and services. 
B)  to flee political oppression. 
C)  the opportunity to increase earnings and standard of living. 
D)  to reunite with family members. 
A)  the prospect of paying lower prices for goods and services. 
B)  to flee political oppression. 
C)  the opportunity to increase earnings and standard of living. 
D)  to reunite with family members.

Question 12

Native-born workers may not be harmed by immigration if it

Accepted Answer

A)  reduces wages and labor demand is inelastic. 
B)  reduces the rate of return on capital. 
C)  increases the rate of return on capital. 
D)  causes production costs to rise. 
A)  reduces wages and labor demand is inelastic. 
B)  reduces the rate of return on capital. 
C)  increases the rate of return on capital. 
D)  causes production costs to rise.

Question 13

Any migration that affects the economies of the countries involved is referred to as "economic immigration."

Accepted Answer

A) True 
 B)False

Question 14

A decrease in wage rates in the United States will

Accepted Answer

A)  decrease total wage income if labor demand is elastic. 
B)  increase total wage income if labor demand is inelastic. 
C)  increase total wage income if labor demand is elastic. 
D)  decrease total wage income regardless of the elasticity of labor demand. 
A)  decrease total wage income if labor demand is elastic. 
B)  increase total wage income if labor demand is inelastic. 
C)  increase total wage income if labor demand is elastic. 
D)  decrease total wage income regardless of the elasticity of labor demand.

Question 15

What is the net effect of illegal immigration on total employment in the United States?

Accepted Answer

A)  The net effect is zero, as illegal immigrant workers displace domestic-born workers on a one-for-one basis. 
B)  Total employment increases, but with some substitution of illegal immigrants for domestic-born workers. 
C)  Total employment decreases. 
D)  Total employment increases, with no displacement of or substitution for domestic-born workers. 
A)  The net effect is zero, as illegal immigrant workers displace domestic-born workers on a one-for-one basis. 
B)  Total employment increases, but with some substitution of illegal immigrants for domestic-born workers. 
C)  Total employment decreases. 
D)  Total employment increases, with no displacement of or substitution for domestic-born workers.

Question 16

The Immigration Reform and Control Act of 1986

Accepted Answer

A)  increased fines on employers who hire illegal immigrants. 
B)  boosted funding for fencing, monitoring, and policing the U.S.-Mexican border. 
C)  created a guest-worker program. 
D)  created an amnesty program for illegal immigrants. 
A)  increased fines on employers who hire illegal immigrants. 
B)  boosted funding for fencing, monitoring, and policing the U.S.-Mexican border. 
C)  created a guest-worker program. 
D)  created an amnesty program for illegal immigrants.

Question 17

There was a spike in U.S. legal immigration from 1989 to 1991 due to

Accepted Answer

A)  an unstable political situation in Mexico. 
B)  increased international travel. 
C)  tremendous economic growth in the U.S. economy. 
D)  an amnesty program legalizing formerly illegal immigrants. 
A)  an unstable political situation in Mexico. 
B)  increased international travel. 
C)  tremendous economic growth in the U.S. economy. 
D)  an amnesty program legalizing formerly illegal immigrants.

Exam 25: Immigration

Suppose the elasticity of labor demand is 1.4. Then a decrease in the wage rate will

Voluntary migration of skilled craft workers from low-paying to high-paying nations is most likely to be opposed by

The U.S. Census Bureau estimates that more than one million illegal immigrants enter the United States each year.

A nation can maximize the net benefits from immigration by

Human capital refers to

Economic theory suggests that the optimal level of immigration in the United States

About of recent annual population growth in the United States is the result of immigration.

What is the quota for "diversity immigrants" into the U.S.?

The main driver of economic immigration is the opportunity to improve earnings and living standards.

Which of the following is an implicit cost of migration?

The primary motivation for economic immigration is

Native-born workers may not be harmed by immigration if it

Any migration that affects the economies of the countries involved is referred to as "economic immigration."

A decrease in wage rates in the United States will

What is the net effect of illegal immigration on total employment in the United States?

The Immigration Reform and Control Act of 1986

There was a spike in U.S. legal immigration from 1989 to 1991 due to

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

Governments Role and Government Failure

Elasticity

Utility Maximization

Behavioral Economics

Businesses and the Costs of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Pure Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Technology, Rd, and Efficiency

The Demand for Resources

Wage Determination

Rent, Interest, and Profit

Natural Resource and Energy Economics

Public Finance: Expenditures and Taxes

Antitrust Policy and Regulation

Agriculture: Economics and Policy

Income Inequality, Poverty, and Discrimination

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The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

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