Why would illegal immigration have an effect on the prices of goods and services produced by illegal workers? Who benefits from these lower product and service prices?
What will be an ideal response?
Illegal immigrants tend to be paid lower wages than otherwise comparable domestic-born workers. These lower wages translate into lower costs of production and allow producers to increase the supply of goods and services. The increase in supply of these goods and services reduces the equilibrium prices paid by consumers, increases the amount of consumer surplus and raises the standards of living of all Americans and their families.
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When consumers spend and buy things regardless of their level of income, this is known as
A) bad financial management. B) using credit to its maximum. C) living the good life. D) autonomous consumption spending.
For a natural monopoly to exist
A) a firm must continually buy up its rivals. B) a firm must have a government-imposed barrier. C) a firm's long-run average cost curve must exhibit diseconomies of scale beyond the economically efficient output level. D) a firm's long-run average cost curve must exhibit economies of scale throughout the relevant range of market demand.
Refer to Table 18-2. The table above lists three policy alternatives that the U.S. Senate will vote on, along with the ranking of these alternates
The Senate must decide which of these alternatives should receive an additional $1 billion of funding, and there is enough money in the federal budget for only one of these alternatives. If a series of votes is taken in which each pair of alternatives is considered (homeland security and education; homeland security and medical research; education and medical research) which of the following will result from these votes? A) The results will illustrate the voting paradox. B) When the vote is between homeland security and education, the Senators will vote for education to receive funding. C) The results from the voting will illustrate the median voter theorem. D) The Senators' votes will demonstrate transitivity.
Other things equal, if the Fed increases the discount rate,
A) the monetary base will decrease and the money supply will remain constant. B) the monetary base and the money supply will both decrease. C) the money supply will decrease and the monetary base will remain constant. D) the monetary base will decrease and the money supply may increase or remain constant.