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Economic immigrants:
A. are defined as any international migrants that have an impact on the economy.
B. are defined as international migrants motivated by economic gain.
C. only impact the economy if they enter the country legally.
D. include not only people, but also any capital that migrates from another country.
AACSB: Analytic
Bloom's: Level 1 Remember
Difficulty: 1 Easy
Learning Objective: 22-01 Describe the extent of legal and illegal immigration into the United States.
Topic: Number of immigrants
2. About ________ of recent annual population growth in the United States is the result of
immigration.
A. one-tenth
B. one-fifth
C. one-third
D. one-half
AACSB: Analytic
Bloom's: Level 1 Remember
Difficulty: 1 Easy
Learning Objective: 22-01 Describe the extent of legal and illegal immigration into the United States.
Topic: Number of immigrants
3. About ________ of recent annual labor force growth in the United States is the result of
immigration.
A. one-tenth
B. one-fifth
C. one-third
D. one-half
AACSB: Analytic
Bloom's: Level 1 Remember
Difficulty: 1 Easy
Learning Objective: 22-01 Describe the extent of legal and illegal immigration into the United States.
Topic: Number of immigrants
4. In 2009, the greatest number of legal immigrants arriving in the United States came from:
A. India and El Salvador.
B. the Dominican Republic and Cuba.
C. China and Vietnam.
D. Mexico and China.
5. The U.S. Census Bureau estimates that from 2000 to 2009, the net inflow of unauthorized
immigrants was about:
A. 100,000 annually.
B. 250,000 annually.
C. 350,000 annually.
D. 700,000 annually.
AACSB: Analytic
Bloom's: Level 1 Remember
Difficulty: 1 Easy
Learning Objective: 22-01 Describe the extent of legal and illegal immigration into the United States.
Status: New
Topic: Number of immigrants
AACSB: Analytic
Bloom's: Level 1 Remember
Difficulty: 1 Easy
Learning Objective: 22-01 Describe the extent of legal and illegal immigration into the United States.
Topic: Number of immigrants
7. Approximately how many people became permanent legal residents of the United States in
2009?
A. 1.1 million.
B. 850,000.
C. 700,000.
D. 250,000.
AACSB: Analytic
Bloom's: Level 1 Remember
Difficulty: 1 Easy
Learning Objective: 22-01 Describe the extent of legal and illegal immigration into the United States.
Status: New
Topic: Number of immigrants
B. 50 percent
C. 66 percent
D. 81 percent
AACSB: Analytic
Bloom's: Level 1 Remember
Difficulty: 1 Easy
Learning Objective: 22-01 Describe the extent of legal and illegal immigration into the United States.
Topic: Number of immigrants
AACSB: Analytic
Bloom's: Level 1 Remember
Difficulty: 1 Easy
Learning Objective: 22-01 Describe the extent of legal and illegal immigration into the United States.
Status: New
Topic: Number of immigrants
10. According to U.S. Census Bureau data, approximately how many illegal immigrants are
estimated to be living continuously in the United States?
A. 5 million
B. 11 million
C. 23 million
D. 30 million
AACSB: Analytic
Bloom's: Level 1 Remember
Difficulty: 1 Easy
Learning Objective: 22-01 Describe the extent of legal and illegal immigration into the United States.
Status: New
Topic: Number of immigrants
11. Which of the following countries has the largest number of immigrants, as a percentage of
the labor force (as of 2006)?
A. Austria
B. New Zealand
C. United States
D. Australia
AACSB: Analytic
Bloom's: Level 1 Remember
Difficulty: 1 Easy
Learning Objective: 22-02 Discuss why economists view economic immigration as a personal human capital investment.
AACSB: Analytic
Bloom's: Level 1 Remember
Difficulty: 1 Easy
Learning Objective: 22-02 Discuss why economists view economic immigration as a personal human capital investment.
Topic: Decision to migrate
D. Alexander migrates to the United States because his political writings are censored in his
home country.
16. Kara is considering migrating to another country. Which of the following represents a cost
she will face if she decides to move?
A. Financial expenditures to transport herself and her belongings to her new country.
B. The income she currently earns in her home country.
C. The application fee for a green card.
D. All of these.
17. Juan wants to migrate from Mexico to the United States, but knows he cannot do so legally at
this time. If he decides to attempt to enter the U.S. illegally, which of the following costs will he
most likely not face?
A. Payment to an expediter ("coyote") to facilitate his entry into the U.S.
B. A green card application fee.
C. The loss of income from his current factory job.
D. All of these are costs he must incur to migrate.
Learning Objective: 22-02 Discuss why economists view economic immigration as a personal human capital investment.
Topic: Decision to migrate
19. Which of the following individuals is most likely to migrate to Switzerland, assuming that all
face equally good prospects of securing a good job after arrival?
A. Ricardo is 25 years old, single, and currently lives in Italy.
B. Ivan is 50 years old, married, and currently lives in Russia.
C. Maria is 40 years old, married with three children, and currently lives in Mexico.
D. Tran is 35 years old, single, speaks only Vietnamese and a little English, and currently lives in
Vietnam.
22. Immigrants tend to choose countries closer to their country of origin because:
A. bordering countries always have high wage rates.
B. there are fewer beaten paths to nearby countries, and therefore better prospects of finding a
good job.
C. neighboring countries usually speak the same language.
D. migration costs tend to be directly related to distance from the country of origin.
AACSB: Analytic
Bloom's: Level 1 Remember
Difficulty: 1 Easy
Learning Objective: 22-03 Explain how immigration affects average wages; resource allocation; domestic output; and group income shares.
Topic: Economic effects of immigration
Assumptions: (1) The demand for labor in Alphania and Betania are as shown by DA and DB,
respectively; (2) Alphania's native labor force is F and that of Betania is g; (3) Wage L in
Alphania is equal to Wage m in Betania; and (4) full employment exists in both countries.
24. Refer to the above diagram and assumptions. If migration is costless and unimpeded:
A. migration will cause the average level of wages to fall in Alphania.
B. no migration will occur.
25. Refer to the above diagram and assumptions. If migration is costless and unimpeded, the
absolute wage bill will necessarily:
A. increase in Alphania if its labor demand curve is elastic.
B. increase in Betania if its labor demand curve is elastic.
C. decrease in Betania.
D. increase in Betania.
26. Refer to the above diagram and assumptions. If migration is costless and unimpeded,
business income will:
A. decrease in Betania, but increase in Alphania.
B. increase in Betania, but decrease in Alphania.
C. decrease in both Alphania and Betania.
D. increase in both Alphania and Betania.
27. Refer to the above diagram and assumptions. If migration is costless and unimpeded, the
average level of wages will:
A. decrease in Betania, but remain unchanged in Alphania.
B. increase in Alphania, but remain unchanged in Betania.
C. increase in Alphania and decrease in Betania.
D. increase in Betania and decrease in Alphania.
28. Refer to the above diagram and assumptions. After migration has ceased:
A. world output will have increased by mljh - MLJH.
B. Betania's output will have increased and Alphania's output will have decreased, but world
output will not have changed.
C. world output will have increased by gjhf - GJHF.
D. world output will have decreased by gjhf - GJHF.
Type: Graph
29. Refer to the above diagram and assumptions. We would expect a flow of remittances from
migrants to:
A. decrease the national income loss in Betania.
B. increase the national income gain in Betania.
C. decrease the national income loss in Alphania.
D. decrease the national income gains in both countries.
30. Refer to the above diagram and assumptions. If unemployment, rather than full employment,
had initially existed in Alphania:
A. then Betania's loss of output would have been greater.
B. then Betania's gain of output would have been less.
C. its loss of output would have been less.
D. its loss of output would have been greater.
Symbols: Q = number of workers demanded; W = wage rate; and VTP = value of the cumulative
total product (output) of the particular number of workers.
Assumptions: (1) The current wage in Zinnia is $20 and the current wage in Marigold is $12; (2)
full employment exists in both countries.
31. Refer to the above data, symbols, and assumptions. At the current wage rate, the combined
number of workers in the two nations is:
A. 2.
B. 3.
C. 5.
D. 4.
AACSB: Analytic
Bloom's: Level 3 Apply
Difficulty: 2 Medium
Learning Objective: 22-03 Explain how immigration affects average wages; resource allocation; domestic output; and group income shares.
Topic: Economic effects of immigration
Type: Table
32. Refer to the above data, symbols, and assumptions. If migration is costless and unimpeded:
A. no migration will occur.
B. migration will cause the wage in Marigold to fall.
C. 2 workers will move from Marigold to Zinnia.
D. 4 workers will move from Marigold to Zinnia.
AACSB: Analytic
Bloom's: Level 4 Analyze
Difficulty: 3 Hard
Learning Objective: 22-03 Explain how immigration affects average wages; resource allocation; domestic output; and group income shares.
Topic: Economic effects of immigration
Type: Table
33. Refer to the above data, symbols, and assumptions. If migration is costless and unimpeded,
the wage in both countries will equalize at:
A. $16.
B. $18.
C. $20.
D. $14.
AACSB: Analytic
Bloom's: Level 4 Analyze
Difficulty: 3 Hard
Learning Objective: 22-03 Explain how immigration affects average wages; resource allocation; domestic output; and group income shares.
Topic: Economic effects of immigration
Type: Table
34. Refer to the above data, symbols, and assumptions. If migration is costless and unimpeded,
the combined value of total product in the two countries will:
A. decline from $62 to $36.
B. decline from $120 to $70.
C. increase from $36 to $62.
D. increase from $62 to $70.
AACSB: Analytic
Bloom's: Level 4 Analyze
Difficulty: 3 Hard
Learning Objective: 22-03 Explain how immigration affects average wages; resource allocation; domestic output; and group income shares.
Topic: Economic effects of immigration
Type: Table
35. Refer to the above data, symbols, and assumptions. Migration of workers will:
A. increase the combined value of total product but reduce the wage in Zinnia.
B. increase the combined value of total product but reduce the wage in Marigold.
C. reduce the combined value of total product but increase the wage in Marigold.
D. reduce the combined value of total product but increase the wage in Zinnia.
AACSB: Analytic
Bloom's: Level 4 Analyze
Difficulty: 3 Hard
Learning Objective: 22-03 Explain how immigration affects average wages; resource allocation; domestic output; and group income shares.
Topic: Economic effects of immigration
Type: Table
36. Other things equal, the voluntary relocation of employable migrants from low-paying nations
to high-paying nations will:
A. increase business or capitalist incomes in the low-paying nations.
B. reduce real output in the world.
C. increase business or capitalist incomes in the high-paying nations.
D. reduce wage rates in the low-paying nations.
37. The voluntary relocation of employable migrants from low-paying nations to high-paying
nations reduces:
A. wage rate disparities among nations.
B. business or capitalist income in the world.
C. labor productivity in the world.
D. total wage income in the world.
38. If the elasticity of demand for labor in the United States is unitary, immigration into the
United States can be expected to:
A. increase the average U.S. wage rate.
B. decrease the total amount of wage earnings that U.S. workers receive.
C. increase the total amount of wage earnings that U.S. workers receive.
D. leave the total amount of wage earnings that U.S. workers receive unchanged.
AACSB: Analytic
Bloom's: Level 1 Remember
Difficulty: 1 Easy
Learning Objective: 22-03 Explain how immigration affects average wages; resource allocation; domestic output; and group income shares.
Topic: Economic effects of immigration
42. Under what circumstances will immigration be most likely to equalize wage rates across
countries?
A. Immigration laws are strict.
B. Immigration is costless and unimpeded.
C. Information about job opportunities is limited.
D. Skill transferability is low.
44. Worker migration will cause wage rates to equalize across two countries if all of the
following conditions are met except:
A. migration is motivated strictly by wage differentials.
B. neither nation restricts or interferes with migration.
C. both countries use the same currency.
D. migration has no cost.
45. Inflows of immigrant workers tend to reduce the wages of domestic-born workers. Under
which of the following circumstances is this least likely to occur?
A. Migration between countries is unimpeded.
B. Immigrant workers make remittances to their home country.
C. Immigrant workers and domestic-born workers are substitute resources.
D. Immigrant workers and domestic-born workers are complementary resources.
46. Which of the following statements is most accurate about the effects of migration?
A. Migration generally benefits the mover, but there is a net efficiency loss to the world.
B. Migration generally benefits everyone in both the origin and destination nation.
C. Migration generally benefits the mover and creates a net efficiency gain for the world.
D. Remittances cause the gains from immigration to be distributed unevenly.
D. Wage equalization will only occur if migrant and domestic-born workers are complementary
resources.
48. Which of the following pairs of nations received the most remittances from their emigrants in
2009?
A. Mexico and Egypt
B. China and India
C. Pakistan and Iran
D. Vietnam and Thailand
Difficulty: 1 Easy
Learning Objective: 22-03 Explain how immigration affects average wages; resource allocation; domestic output; and group income shares.
Topic: Economic effects of immigration
52. 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?
A. Wages will rise in the origin nation, 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.
53. Other things equal, immigration has what effects on the destination nation?
A. Reduced average wage rate, increased domestic output, increased business income, and lower
total wage income of native-born workers.
B. Reduced average wage rate, increased domestic output, increased business income, and
greater total wage income of native-born workers.
C. Increased average wage rate, increased domestic output, increased business income, and
greater total wage income of native-born workers.
D. Increased average wage rate, reduced domestic output, reduced business income, and lower
total wage income of native-born workers.
54. Suppose that Gamma is an advanced industrial country and Omega is a developing nation.
Omega will gain the most from having some of its people emigrate to Gamma if:
A. Omega is currently experiencing full employment.
56. Scholarly estimates of the effects of immigration on the average American wage range from:
A. minus 5 to minus 2 percent.
B. plus 2 to plus 3 percent.
C. minus 5 to plus 3 percent.
D. minus 3 to plus 2 percent.
57. According to estimates, what percentage of agricultural workers in the United States are
illegal immigrants?
A. 12
B. 17
C. 24
D. 43
AACSB: Analytic
Bloom's: Level 1 Remember
Difficulty: 1 Easy
Learning Objective: 22-04 Relate how illegal immigration affects employment and wages in low-wage labor markets and impacts state and local
budgets.
Topic: Illegal immigration debate
58. According to estimates, what percentage of cleaning workers in the United States are illegal
immigrants?
A. 12
B. 17
C. 24
D. 43
AACSB: Analytic
Bloom's: Level 1 Remember
Difficulty: 1 Easy
Learning Objective: 22-04 Relate how illegal immigration affects employment and wages in low-wage labor markets and impacts state and local
budgets.
Topic: Illegal immigration debate
Assumptions: 1) Employers in this market are willing and able to ignore minimum wage laws; 2)
Sdrepresents the supply of domestically-born (and legal immigrant) workers; 3) St represents the
total supply of workers in this labor market (Sd plus illegal immigrants); and 4) Unless otherwise
stated, illegal immigration is not effectively blocked by the government.
59. Refer to the above figure. The equilibrium wage and level of employment are, respectively:
A. $5.50 and 250,000
B. $5.50 and 350,000
C. $8 and 350,000
D. $5.50 and 450,000
AACSB: Analytic
Bloom's: Level 4 Analyze
Difficulty: 3 Hard
Learning Objective: 22-04 Relate how illegal immigration affects employment and wages in low-wage labor markets and impacts state and local
budgets.
Topic: Illegal immigration debate
Type: Graph
60. Refer to the above figure. How many domestically-born (and legal immigrant) workers will
be hired at equilibrium?
A. 200,000
B. 250,000
C. 350,000
D. 450,000
AACSB: Analytic
Bloom's: Level 4 Analyze
Difficulty: 3 Hard
Learning Objective: 22-04 Relate how illegal immigration affects employment and wages in low-wage labor markets and impacts state and local
budgets.
Topic: Illegal immigration debate
Type: Graph
61. Refer to the above figure. How many illegal immigrant workers will be hired at equilibrium?
A. 200,000
B. 250,000
C. 350,000
D. 450,000
AACSB: Analytic
Bloom's: Level 4 Analyze
Difficulty: 3 Hard
Learning Objective: 22-04 Relate how illegal immigration affects employment and wages in low-wage labor markets and impacts state and local
budgets.
Topic: Illegal immigration debate
Type: Graph
62. Refer to the above figure. If the government effectively prevents illegal immigrants from
working in this labor market, the equilibrium wage and level of employment are, respectively:
A. $5.50 and 250,000
B. $5.50 and 350,000
C. $8 and 350,000
D. $5.50 and 450,000
AACSB: Analytic
Bloom's: Level 4 Analyze
Difficulty: 3 Hard
Learning Objective: 22-04 Relate how illegal immigration affects employment and wages in low-wage labor markets and impacts state and local
budgets.
Topic: Illegal immigration debate
Type: Graph
63. Refer to the above figure. Assume initially that government does not effectively block illegal
immigration. If the government then finds a way to prevent all illegal immigrants from working
in this labor market:
A. 100,000 domestically-born workers will gain employment at the expense of 200,000 illegal
immigrants.
B. 200,000 domestically-born workers will gain employment at the expense of 200,000 illegal
immigrants.
C. 100,000 domestically-born workers will gain employment at the expense of 250,000 illegal
immigrants.
D. 100,000 domestically-born workers will gain employment at the expense of 100,000 illegal
immigrants.
AACSB: Analytic
Bloom's: Level 4 Analyze
Difficulty: 3 Hard
Learning Objective: 22-04 Relate how illegal immigration affects employment and wages in low-wage labor markets and impacts state and local
budgets.
Topic: Illegal immigration debate
Type: Graph
Assumptions: 1) Employers in this market are willing and able to ignore minimum wage laws; 2)
Sdrepresents the supply of domestically-born (and legal immigrant) workers; 3) St represents the
total supply of workers in this labor market (Sd plus illegal immigrants); and 4) Unless otherwise
stated, illegal immigration is not effectively blocked by the government.
64. Refer to the above figure. The equilibrium wage and level of employment are, respectively:
A. $4.00 and 50,000
B. $4.00 and 60,000
C. $4.00 and 70,000
D. $6.50 and 60,000
AACSB: Analytic
Bloom's: Level 4 Analyze
Difficulty: 3 Hard
Learning Objective: 22-04 Relate how illegal immigration affects employment and wages in low-wage labor markets and impacts state and local
budgets.
Topic: Illegal immigration debate
Type: Graph
65. Refer to the above figure. How many domestically-born (and legal immigrant) workers will
be hired at equilibrium?
A. 20,000
B. 50,000
C. 60,000
D. 70,000
AACSB: Analytic
Bloom's: Level 4 Analyze
Difficulty: 3 Hard
Learning Objective: 22-04 Relate how illegal immigration affects employment and wages in low-wage labor markets and impacts state and local
budgets.
Topic: Illegal immigration debate
Type: Graph
66. Refer to the above figure. How many illegal immigrant workers will be hired at equilibrium?
A. 20,000
B. 50,000
C. 60,000
D. 70,000
AACSB: Analytic
Bloom's: Level 4 Analyze
Difficulty: 3 Hard
Learning Objective: 22-04 Relate how illegal immigration affects employment and wages in low-wage labor markets and impacts state and local
budgets.
Topic: Illegal immigration debate
Type: Graph
67. Refer to the above figure. If the government effectively prevents illegal immigrants from
working in this labor market, the equilibrium wage and level of employment are, respectively:
A. $4.00 and 50,000
B. $4.00 and 60,000
C. $6.50 and 60,000
D. $4.00 and 70,000
AACSB: Analytic
Bloom's: Level 4 Analyze
Difficulty: 3 Hard
Learning Objective: 22-04 Relate how illegal immigration affects employment and wages in low-wage labor markets and impacts state and local
budgets.
Topic: Illegal immigration debate
Type: Graph
68. Refer to the above figure. Assume initially that government does not effectively block illegal
immigration. If the government then finds a way to prevent all illegal immigrants from working
in this labor market:
A. 10,000 domestically-born workers will gain employment at the expense of 20,000 illegal
immigrants.
B. 20,000 domestically-born workers will gain employment at the expense of 20,000 illegal
immigrants.
C. 10,000 domestically-born workers will gain employment at the expense of 70,000 illegal
immigrants.
D. 10,000 domestically-born workers will gain employment at the expense of 50,000 illegal
immigrants.
AACSB: Analytic
Bloom's: Level 4 Analyze
Difficulty: 3 Hard
Learning Objective: 22-04 Relate how illegal immigration affects employment and wages in low-wage labor markets and impacts state and local
budgets.
Topic: Illegal immigration debate
Type: Graph
C. the presence of illegal immigrants in this labor market reduces wages, making these jobs less
attractive to domestic-born workers.
D. firms hiring from this labor market would be forced to shut down if illegal immigration were
blocked.
70. Effectively removing all illegal immigrants from U.S. labor markets would:
A. reduce wages in the United States.
B. increase employment of domestic-born workers, but by a lesser amount than the number of
jobs lost by illegal workers.
C. increase employment of domestic-born workers at a rate of one-for-one with the jobs lost by
illegal workers.
D. increase employment of domestic-born workers by an amount greater than the number of jobs
lost by illegal workers.
D. will attract U.S. workers to undesirable jobs if the differential over less unpleasant work is
sufficiently high.
72. What is the net effect of illegal immigration on total employment in the United States?
A. The net effect is zero, as illegal immigrant workers displace domestic-born workers on a onefor-one basis.
B. Total employment increases, but with some substitution of illegal immigrants for domesticborn workers.
C. Total employment decreases.
D. Total employment increases, with no displacement of or substitution for domestic-born
workers.
D. reduce average wages and employment whether illegal workers are complements to or
substitutes for domestic-born workers.
75. The estimated fiscal burden of illegal immigrant households in the United States is:
A. $800 million per year.
B. $20 billion per year.
C. $50 billion per year.
D. $4.5 billion per year.
AACSB: Analytic
Bloom's: Level 1 Remember
Difficulty: 1 Easy
Learning Objective: 22-04 Relate how illegal immigration affects employment and wages in low-wage labor markets and impacts state and local
budgets.
Topic: Illegal immigration debate
76. Which of the following statements is true about the effects of illegal immigration in the
United States?
A. Illegal immigrant workers displace domestic-born workers on a one-for-one basis.
B. Illegal immigration has a negative fiscal impact that falls most heavily on state and local
governments.
C. Illegal immigration negatively impacts wages and the standard of living for all domestic-born
workers.
D. All of these are true.
budgets.
Topic: Illegal immigration debate
78. Illegal immigration positively contributes to the U.S. standard of living by reducing:
A. the fiscal burdens of state and local governments.
B. the average wages of domestic-born workers.
C. crime rates.
D. prices of goods and services produced with illegal immigrant labor.
79. Economic theory suggests that the optimal level of immigration in the United States:
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.
80. Other things equal, the optimal number of immigrants will be greater, the:
A. greater the education and skill level of immigrants.
81. Refer to the above figure. The optimal level of immigration in this country:
A. is Q1.
B. is Q2.
C. is Q3.
D. cannot be determined with the information given
Difficulty: 3 Hard
Learning Objective: 22-05 Demonstrate how economics can inform current immigration discussions and attempts to reform immigration laws.
Topic: Optimal immigration
Type: Graph
82. Refer to the above figure. An increase in the number of highly skilled and educated potential
immigrants would:
A. increase MB and increase the optimal quantity of immigrants.
B. reduce MB and reduce the optimal quantity of immigrants.
C. increase MC and increase the optimal quantity of immigrants.
D. reduce MC and reduce the optimal quantity of immigrants.
83. Refer to the above figure. If more criminals are in the mix of potential immigrants, how will
this affect the optimal quantity of immigrants?
A. It will increase MC and reduce the optimal quantity.
B. It will increase MC and raise the optimal quantity.
C. It will lower MC and raise the optimal quantity.
D. It will lower MC and reduce the optimal quantity.
84. Refer to the above figure. An increase in the number of highly motivated and skilled
potential immigrants will:
A. reduce MB and increase MC, lowering the optimal quantity of immigrants.
B. increase MB and reduce MC, raising the optimal quantity of immigrants.
C. increase both MB and MC, and the effect on the optimal quantity is uncertain.
D. reduce both MB and MC, and the effect on the optimal quantity is uncertain.
85. Refer to the above figure. A weaker economy, characterized by higher unemployment rates,
will:
A. reduce MB and increase MC, lowering the optimal quantity of immigrants.
B. increase MB and reduce MC, raising the optimal quantity of immigrants.
C. increase both MB and MC, and the effect on the optimal quantity is uncertain.
D. reduce both MB and MC, and the effect on the optimal quantity is uncertain.
86. Other things equal, the greater the degree of complementarity between potential immigrants
and native-born workers, the:
A. lower the optimal quantity of immigrants.
B. lower the marginal benefit of additional immigrants.
87. Other things equal, the optimal quantity of immigrants will be greater, the:
A. higher the unemployment rate in the destination nation.
B. greater the degree of substitutability between immigrant and domestic-born workers.
C. greater the degree of complementarity between immigrant and domestic-born workers.
D. lower the rate at which immigrants can be absorbed.
88. (Consider This) Since 1990, U.S. immigrants have founded ____ of every _____ public
companies financed by venture capital.
A. 1, 4
B. 1, 3
C. 1, 2
D. 2, 5
Learning Objective: 22-03 Explain how immigration affects average wages; resource allocation; domestic output; and group income shares.
Topic: Economic effects of immigration
AACSB: Analytic
Bloom's: Level 1 Remember
Difficulty: 1 Easy
Learning Objective: 22-05 Demonstrate how economics can inform current immigration discussions and attempts to reform immigration laws.
Topic: Optimal immigration
C. provided a form of amnesty for illegal immigrants through the issuance of Z visas.
D. done all of these.
AACSB: Analytic
Bloom's: Level 1 Remember
Difficulty: 1 Easy
Learning Objective: 22-05 Demonstrate how economics can inform current immigration discussions and attempts to reform immigration laws.
Topic: Optimal immigration
92. (Last Word) "Z visas" in the proposed immigration reform of 2007:
A. would have allowed the nearly 12 million illegal immigrants to live and work legally in the
United States.
B. are required of all new immigrants to the United States.
C. are issued to refugees and those seeking political asylum, allowing immigration quotas to be
exceeded.
D. would have been issued primarily to guest workers seeking short-term employment in the
United States.