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Assuming Labor Demand Is Downward Sloping and That the Labor

Question 27

Multiple Choice

Assuming labor demand is downward sloping and that the labor market is competitive, what happens to national income as a result in immigration?


A) National income increases by more than the total earnings of immigrants.
B) National income increases by less than the total earnings of immigrants.
C) National income decreases by more than the total earnings of immigrants.
D) National income decreases by less than the total earnings of immigrants.
E) Immigrants have no effect on national income because they are not citizens.

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