Why are state and local governments negatively affected by a rise in immigration?
a. Increased expenditures on education and welfare
b. Additional requirements to comply with employment laws
c. Increased administration costs from federal government
d. Decreased influx of income and sales taxes
a. Increased expenditures on education and welfare
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From the economic point of view, profit is
A) a four-letter word. B) the same as loss. C) the result of uncertainty. D) a sign of economic injustice. E) none of the above.
Which of the following will not cause an increase in the natural rate of unemployment?
A) an increase in m B) an increase in z C) an increase in the expected inflation rate D) a reduction in m E) none of the above
Due to the existence of the FDIC, banks
A. may make riskier loans knowing that their depositors are insured. B. have not changed their behavior even with the existence of insurance. C. are no longer concerned about net worth. D. become more cautious in making loans.
Refer to the diagram and list of assumptions. The elimination of gender discrimination:
(1) the labor force is comprised of 9 million men and 9 million women workers;
(2) the economy has 3 occupations, X, Y, and Z, each having identical demand curves for
labor; (3) men and women workers are homogeneous with respect to their labor-market
capabilities; (4) women are discriminated against by being excluded from occupations X and Y
and are confined to Z; and (5) aside from discrimination, the economy is competitive, and
workers seek to maximize their earnings.
A. may either increase or reduce real domestic output, depending on what happens to the
level of wages.
B. will increase real domestic output.
C. will have no effect on real domestic output.
D. will reduce real domestic output.