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The majority of international migrants move to countries relatively close to their home countries because close proximity reduces the cost of the move relative to anticipated benefits.

A) True
B) False

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The optimal level of immigration occurs where marginal benefit is at its greatest.

A) True
B) False

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  Assumptions: (1) The demand for labor in Alphania and Betania are as shown by Dₐ and Dᵦ , respectively; (2) Alphania's native labor force is F and that of Betania is g; (3) wage L in Alphania is equal to wage m in Betania; and (4) full employment exists in both countries. If migration is costless and unimpeded, A) migration will cause the average level of wages to fall in Alphania. B) no migration will occur. C) fg workers will move from Betania to Alphania. D) GF workers will move from Alphania to Betania. Assumptions: (1) The demand for labor in Alphania and Betania are as shown by Dₐ and Dᵦ , respectively; (2) Alphania's native labor force is F and that of Betania is g; (3) wage L in Alphania is equal to wage m in Betania; and (4) full employment exists in both countries. If migration is costless and unimpeded,


A) migration will cause the average level of wages to fall in Alphania.
B) no migration will occur.
C) fg workers will move from Betania to Alphania.
D) GF workers will move from Alphania to Betania.

E) A) and B)
F) A) and C)

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Which of the following groups has the highest proportion of unskilled illegal immigrants in the U.S.?


A) agricultural workers
B) construction workers
C) cleaning workers
D) food preparers

E) A) and B)
F) None of the above

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The H1-B provision of immigration law


A) allows 65,000 high-skilled workers in specialty occupations to enter and work in the United States for six years.
B) raised U.S. annual immigration quotas from 500,000 to 700,000.
C) established a lottery for the admission of diversity immigrants into the United States.
D) provided amnesty to over one million illegal immigrants in 1989-1991, allowing them to become legal citizens of the United States.

E) None of the above
F) A) and C)

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  Assumptions: (1) Employers in this market are willing and able to ignore minimum wage laws; (2) S<sub>d</sub> represents the supply of domestic-born (and legal immigrant) workers; (3) Sₜ represents the total supply of workers in this labor market (S<sub>d</sub> plus illegal immigrants) ; and (4) unless otherwise stated, illegal immigration is not effectively blocked by the government.How many illegal immigrant workers will be hired at equilibrium? A) 200,000 B) 250,000 C) 350,000 D) 450,000 Assumptions: (1) Employers in this market are willing and able to ignore minimum wage laws; (2) Sd represents the supply of domestic-born (and legal immigrant) workers; (3) Sₜ represents the total supply of workers in this labor market (Sd plus illegal immigrants) ; and (4) unless otherwise stated, illegal immigration is not effectively blocked by the government.How many illegal immigrant workers will be hired at equilibrium?


A) 200,000
B) 250,000
C) 350,000
D) 450,000

E) A) and D)
F) None of the above

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Suppose the elasticity of labor demand is 0.6. Then a decrease in the wage rate will


A) decrease total wage income.
B) increase total wage income.
C) have no impact on total wage income.
D) have an indeterminate impact on total wage income.

E) A) and B)
F) A) and C)

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Studies show that the largest negative impact of illegal immigrants is on


A) the wages of native-born workers.
B) the average wage in the U.S.
C) employment opportunities of native-born workers.
D) the wages of previous immigrants.

E) All of the above
F) A) and B)

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  Refer to the figure. An increase in the number of highly motivated and skilled potential immigrants will A) reduce MB and increase MC, lowering the optimal quantity of immigrants. B) increase MB and reduce MC, raising the optimal quantity of immigrants. C) increase both MB and MC, and the effect on the optimal quantity is uncertain. D) reduce both MB and MC, and the effect on the optimal quantity is uncertain. Refer to the figure. An increase in the number of highly motivated and skilled potential immigrants will


A) reduce MB and increase MC, lowering the optimal quantity of immigrants.
B) increase MB and reduce MC, raising the optimal quantity of immigrants.
C) increase both MB and MC, and the effect on the optimal quantity is uncertain.
D) reduce both MB and MC, and the effect on the optimal quantity is uncertain.

E) A) and B)
F) A) and C)

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Illegal immigration tends to


A) increase average wages and employment where illegal workers are complements to domestic-born workers.
B) increase average wages and employment where illegal workers are substitutes for domestic-born workers.
C) increase average wages and employment whether illegal workers are complements to or substitutes for domestic-born workers.
D) reduce average wages and employment whether illegal workers are complements to or substitutes for domestic-born workers.

E) B) and D)
F) None of the above

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Which of the following is an implicit cost of migration?


A) the cost of traveling to a new country
B) having to adapt to a new culture
C) paying application fees
D) payment to an expediter

E) None of the above
F) A) and B)

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As a result of a major overhaul of the U.S. welfare system in 1996,


A) benefits were expanded for immigrants.
B) immigrants are denied benefits for their first five years in the U.S.
C) immigrants are denied benefits for their first three years in the U.S.
D) more immigrants qualified for welfare benefits.

E) A) and B)
F) A) and C)

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Human capital refers to


A) the accumulated knowledge and skills that allow a person to be productive.
B) machinery that requires extensive human interaction to be productive.
C) the accumulated financial assets of people.
D) all of these things.

E) A) and B)
F) B) and C)

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Business income will decrease in the nation from which workers emigrate.

A) True
B) False

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Suppose that Rosa is considering migration to another country. To move, she will have to spend $5,000 on transportation and $4,000 in application and other processing fees. Rosa's stream of future earnings in her home country is $500,000. She expects to earn a stream of future earnings of $800,000 in another country. Based on this information, Rosa's implicit cost of migrating is


A) $9,000.
B) $500,000.
C) $509,000.
D) $5,000.

E) B) and C)
F) None of the above

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  Assumptions: (1) Employers in this market are willing and able to ignore minimum wage laws; (2) S<sub>d</sub> represents the supply of domestic-born (and legal immigrant) workers; (3) Sₜ represents the total supply of workers in this labor market (S<sub>d</sub> plus illegal immigrants) ; and (4) unless otherwise stated, illegal immigration is not effectively blocked by the government.If the government effectively prevents illegal immigrants from working in this labor market, the equilibrium wage and level of employment are A) $4.00 and 50,000. B) $4.00 and 60,000. C) $6.50 and 60,000. D) $4.00 and 70,000. Assumptions: (1) Employers in this market are willing and able to ignore minimum wage laws; (2) Sd represents the supply of domestic-born (and legal immigrant) workers; (3) Sₜ represents the total supply of workers in this labor market (Sd plus illegal immigrants) ; and (4) unless otherwise stated, illegal immigration is not effectively blocked by the government.If the government effectively prevents illegal immigrants from working in this labor market, the equilibrium wage and level of employment are


A) $4.00 and 50,000.
B) $4.00 and 60,000.
C) $6.50 and 60,000.
D) $4.00 and 70,000.

E) All of the above
F) B) and C)

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Removing all illegal immigrants would expand domestic-born employment by an amount equal to the number of illegal immigrants removed.

A) True
B) False

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U.S. immigrants (legal and illegal) have


A) higher prison rates and crime rates than the native-born population.
B) lower prison rates and crime rates than the native-born population.
C) lower prison rates, but illegal immigrants have higher crime rates, than the native-born population.
D) higher prison rates, but lower crime rates, than the native-born population.

E) A) and B)
F) A) and C)

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Native-born workers may not be harmed by immigration if


A) they are complementary resources to immigrant workers.
B) they are substitute resources for immigrant workers.
C) demand for their labor is elastic.
D) immigrants remit their earnings to their home countries.

E) B) and D)
F) A) and C)

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Why would a high-wage nation oppose immigration?

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High-wage nations oppose immigration bec...

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