Refer to the given figure and assumptions. 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:
(1) Employers in this market are willing and able to ignore minimum wage laws;
(2) S d represents the supply of domestic-born (and legal immigrant) workers; (3) S t represents
the total supply of workers in this labor market (S d plus illegal immigrants); and (4) unless
otherwise stated, illegal immigration is not effectively blocked by the government.
A. 100,000 domestic-born workers will gain employment at the expense of 200,000 illegal
immigrants.
B. 200,000 domestic-born workers will gain employment at the expense of 200,000 illegal
immigrants.
C. 100,000 domestic-born workers will gain employment at the expense of 250,000 illegal
immigrants.
D. 100,000 domestic-born workers will gain employment at the expense of 100,000 illegal
immigrants.
A. 100,000 domestic-born workers will gain employment at the expense of 200,000 illegal
immigrants.
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The Folk Theorem says that anything can happen in infinitely repeated games.
Answer the following statement true (T) or false (F)
A unit of output whose production and sale adds less to cost than it generates in additional revenue is
A) a profitable unit to produce and sell if marginal cost declines with additional output. B) a profitable unit to produce and sell if total receipts exceed total costs. C) a profitable unit to produce and sell unless it must be sold at a price below average unit cost. D) a profitable unit to produce and sell.
According to the saving and investment equation, if net foreign investment falls by $35 million,
A) domestic investment will fall by $35 million. B) national savings will rise by $35 million. C) national saving in excess of domestic investment will rise by $35 million. D) national saving in excess of domestic investment will decrease by $35 million.
Assume the market for cage-free eggs is perfectly competitive. All else equal, as more farmers choose to produce and sell cage-free eggs, what is likely to happen to the equilibrium price of the eggs and profits of these farmers in the long run?
A) The equilibrium price is likely to remain unchanged and profits are likely to increase. B) The equilibrium price is likely to decrease and profits are likely to decrease. C) The equilibrium price is likely to increase and profits are likely to increase. D) The equilibrium price is likely to increase and profits are likely to remain unchanged.