One Immigrant to Country X Increased Her Annual Wage from $8000

One immigrant to country X increased her annual wage from $8000 (in her home country) to $10,000 in Country X.There are no costs to moving.At the same time,one native worker saw their wage fall from $15,000 to $10,000 because of the entry of the one immigrant into the labor market.The native worker was producing $16,000 worth of goods and the immigrant added another $11,000 worth of goods to total output.Both continue to work at $10,000.Given that nothing else happens,which of the following statements is true? Country X (not counting the immigrant) is

A) better off by $5000.
B) worse off by $5000.
C) better off by $1000.
D) worse off by $4000.

Correct Answer:

Verified

Show Answer