Suppose an economy exhibits general conditions of downward-sloping labor demand, upward-sloping supplies of domestic and immigrant labor, and a competitive labor market. Which of the following is not a likely outcome of immigration?
A. Some economic surplus will transfer from domestic workers to domestic firms.
B. Domestic workers who keep their job will experience an increase in earnings.
C. Economic surplus will increase in the destination country, even net of immigrant earnings.
D. Domestic workers will experience some job losses.
E. The market-clearing wage will fall.
Answer: B
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