Multiple Choice
One immigrant to country X increases his wage from $13,000 (in their home country) to $15,000.There are no costs to moving.A native worker was earning $15,000.However,the immigrant replaces him and the native instead lives and works at home,which he values at $15,000.Which of the following statements is true?
A) Country X (not counting the immigrant) is better off.
B) The native worker is worse off.
C) The immigrant could be taxed $1000 with the proceeds going to the native worker and the employer so that everyone is better off (compared to no immigration) .
D) The net benefit of this immigration to everyone (native worker, employer, immigrant) is zero.
Correct Answer:
Verified
Correct Answer:
Verified
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