Question 1

The average fiscal burden on state and local government for each low-skilled immigrant household may be as high as

Accepted Answer

A)  $5,500 per household per year. 
B)  $9,200 per household per year. 
C)  $19,500 per household per year. 
D)  $31,600 per household per year. 
A)  $5,500 per household per year. 
B)  $9,200 per household per year. 
C)  $19,500 per household per year. 
D)  $31,600 per household per year.

Question 2

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. 
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.

Question 3

Kara is considering migrating to another country. Which of the following represents a cost she will face if she decides to move?

Accepted Answer

A)  financial expenditures to transport herself and her belongings to her new country 
B)  the loss of the income she currently earns in her home country 
C)  the application fee for a green card 
D)  all of these 
A)  financial expenditures to transport herself and her belongings to her new country 
B)  the loss of the income she currently earns in her home country 
C)  the application fee for a green card 
D)  all of these

Question 4

In 2014, as many as million illegal immigrants were residing continuously in the U.S.

Accepted Answer

A)  4 
B)  11 
C)  20 
D)  29 
A)  4 
B)  11 
C)  20 
D)  29

Question 5

At the heart of U.S. immigration laws are immigration quotas.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is an explicit cost of migration?

Accepted Answer

A)  wages a worker gives up when they leave their home country 
B)  adapting to a new culture 
C)  paying application fees 
D)  the stress of looking for a job in a new country 
A)  wages a worker gives up when they leave their home country 
B)  adapting to a new culture 
C)  paying application fees 
D)  the stress of looking for a job in a new country

Question 7

The existence of "beaten paths" tends to discourage immigration because of the perception that job prospects have been exhausted.

Accepted Answer

A) True 
 B)False

Question 8

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 9

Which of the following groups does not fit in with the others?

Accepted Answer

A)  illegal immigrants 
B)  undocumented workers 
C)  green-card holders 
D)  overstaying aliens 
A)  illegal immigrants 
B)  undocumented workers 
C)  green-card holders 
D)  overstaying aliens

Question 10

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 will decide to migrate as long as the implicit costs of leaving her friends and family and adjusting to a new culture are

Accepted Answer

A)  greater than $509,000. 
B)  less than $300,000. 
C)  less than $91,000. 
D)  less than $291,000. 
A)  greater than $509,000. 
B)  less than $300,000. 
C)  less than $91,000. 
D)  less than $291,000.

Question 11

Assuming migration is unimpeded and costless, which of the following statements is most accurate about the effect of immigration on wages in both the origin and destination nations?

Accepted Answer

A)  Wages will rise in the origin nation and fall in the destination nation, and overall wage income must rise. 
B)  Wages will rise in both nations, and overall wage income must rise. 
C)  Wages will rise in the origin nation and fall in the destination nation, and the wage changes must cancel each other, resulting in no net change in overall wage income. 
D)  Wages will rise in the origin nation and fall in the destination nation, but the effect on overall wage income depends on the elasticities of labor demand. 
A)  Wages will rise in the origin nation and fall in the destination nation, and overall wage income must rise. 
B)  Wages will rise in both nations, and overall wage income must rise. 
C)  Wages will rise in the origin nation and fall in the destination nation, and the wage changes must cancel each other, resulting in no net change in overall wage income. 
D)  Wages will rise in the origin nation and fall in the destination nation, but the effect on overall wage income depends on the elasticities of labor demand.

Question 12

In recent years, immigration has contributed an insignificant amount to U.S. population growth.

Accepted Answer

A) True 
 B)False

Question 13

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. 
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.

Question 14

The simple immigration model suggests that labor migration raises the wage rate in the country of origin while reducing the wage rate in the host country.

Accepted Answer

A) True 
 B)False

Question 15

An increase in the mobility of labor across nations tends to decrease the world's output of goods and services.

Accepted Answer

A) True 
 B)False

Question 16

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 17

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. 
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.

Question 18

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 19

Approximately how many people became permanent legal residents of the United States in 2013?

Accepted Answer

A)  990,550 
B)  854,200 
C)  720,160 
D)  1,152,000 
A)  990,550 
B)  854,200 
C)  720,160 
D)  1,152,000

Question 20

A recent estimate of the fiscal burden on state and local government for low-skilled immigrant households is nearly

Accepted Answer

A)  $10 billion annually. 
B)  $30 billion annually. 
C)  $50 billion annually. 
D)  $100 billion annually. 
A)  $10 billion annually. 
B)  $30 billion annually. 
C)  $50 billion annually. 
D)  $100 billion annually.

Exam 25: Immigration

The average fiscal burden on state and local government for each low-skilled immigrant household may be as high as

Human capital refers to the

Kara is considering migrating to another country. Which of the following represents a cost she will face if she decides to move?

In 2014, as many as million illegal immigrants were residing continuously in the U.S.

At the heart of U.S. immigration laws are immigration quotas.

Which of the following is an explicit cost of migration?

The existence of "beaten paths" tends to discourage immigration because of the perception that job prospects have been exhausted.

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

Which of the following groups does not fit in with the others?

Assuming migration is unimpeded and costless, which of the following statements is most accurate about the effect of immigration on wages in both the origin and destination nations?

In recent years, immigration has contributed an insignificant amount to U.S. population growth.

Older workers are

The simple immigration model suggests that labor migration raises the wage rate in the country of origin while reducing the wage rate in the host country.

An increase in the mobility of labor across nations tends to decrease the world's output of goods and services.

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

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

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

Approximately how many people became permanent legal residents of the United States in 2013?

A recent estimate of the fiscal burden on state and local government for low-skilled immigrant households is nearly

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

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