If the supply of unskilled domestic labor and the supply of unskilled immigrant labor are both perfectly inelastic, then the typical market equilibrium will be such that
A. immigrant labor will replace domestic labor.
B. the postimmigration equilibrium will be associated with lower wages being paid to the unskilled immigrants compared to the wages paid to unskilled domestic labor.
C. labor demand will shift out with increased immigration.
D. the perfectly inelastic supply of unskilled domestic labor will prevent the hiring of any unskilled immigrant labor.
E. wages paid to unskilled domestic labor will be less under immigration than under no immigration.
Answer: E
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If in market equilibrium the marginal social cost of producing a good exceeds the marginal private cost,
a. not enough of the product is being produced b. the price charged for the good is too high c. the good produces a positive externality d. the good produces a negative externality e. the government should produce the good
According to the graph shown, if this economy were open to free trade, domestic producers would produce how many units?
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. 45
B. 85
C. 120
D. 75
In the aggregate expenditures model, assume that the MPC is 0.75 . An increase in investment spending of $6 billion would produce an ultimate increase in real GDP of:
a. $0.25 billion. b. $0.75 billion. c. $12 billion. d. $24 billion.
Marginal analysis involves looking at the extra costs involved in a decision
a. True b. False Indicate whether the statement is true or false