Describe the two extreme views on illegal immigration and their employment effects. Why are these two views misleading?
What will be an ideal response?
The first view on illegal immigration suggests that a job given to an illegal immigrant takes a job away from a native worker. This 1-for-1 view is based on the idea that the economy only has a given number of jobs at any time. On the other hand, the second view on illegal immigration suggests that illegal immigrants are given the jobs that native-born workers do not want; thus, not reducing the number of jobs available to native workers but increasing total employment. These two views are misleading because there is no fixed number of jobs in an economy at any time and immigrants may take jobs that most U.S.-born workers do not want, but only at the lower rate generated by the inflow of these foreign workers.
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If the MPS is 0.1 and the income tax rate is 0.33 the marginal leakage rate for a closed economy is
A) 0.033. B) 0.23. C) 0.43. D) 0.397.
Assume that an economy is in equilibrium when the arrival of immigrants causes an increase in the supply of labor
Once the economy has adjusted to its new equilibrium, and assuming that the supply of capital remains unchanged, which of the following has decreased? A) the share of capital income in national income B) the share of labor income in national income C) national income D) the rental price of capital E) none of the above
Some companies subject their applicants to extensive tests. Why?
A) to reduce the informational asymmetry between the firm and the applicant B) to screen the applicant to avoid the problem of adverse selection C) to gather more information about the applicant D) All of the above.
The amount of autonomous consumption in an economy is measured by the:
a. the intercept of the consumption function when disposable income is positive. b. the intercept of the consumption function where actual consumption is above the 45-degree line. c. the intercept of the consumption function when disposable income is zero. d. the intercept of the consumption function where actual consumption is below the 45-degree line. e. the intercept of the consumption function when disposable income is negative.