“Immigration can be viewed as an investment decision.” Explain
What will be an ideal response?
There are many implicit and explicit costs associated with the decision to migrate. A legal immigrant incurs out-of-pocket expenses in the form of application fees for a visa or a green card, while illegal immigrants may incur out-of-pocket expenses in order to be smuggled into another nation. There are also implicit costs associated with migration such as the income given up while a worker is moving and looking for a job in a new country or the costs of leaving family and friends and adapting to a new culture, language and climate. Furthermore, illegal immigrants may face the potential cost of being caught, jailed and finally deported. Immigrants estimate and weigh these costs against the expected benefits of the higher wages in the new country and move only when the expected future benefits outweigh the explicit and implicit costs associated with migration.
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When the marginal propensity to save declines, the
A) multiplier becomes larger and the IS curve becomes flatter. B) marginal propensity to consume increases and there is no effect on the IS curve. C) multiplier becomes larger and the IS curve becomes steeper. D) multiplier declines and the IS curve becomes steeper.
The primary source of revenue for local governments is _____
a. income taxation b. sales taxation c. estate taxation d. property taxation
When an individual's wage rises, the income effect tends to:
a. increase hours worked. b. decrease hours worked. c. leave hours worked unchanged. d. an impossible prediction about what will happen to hours worked.
Insurance companies charge annual premiums to collect revenue, which they then use to pay customers who file claims for damages they incur. As a result of the moral hazard problem (1) what is the effect on the percentage of policy holders making claims, and (2) what is the effect on the average premium charged when compared to a world with no moral hazard problem?
a. The percentage of policy holders making claims is higher; average annual premiums are lower. b. The percentage of policy holders making claims is lower; average annual premiums are lower. c. The percentage of policy holders making claims is higher; average annual premiums are higher. d. The percentage of policy holders making claims is lower; average annual premiums are higher.