1rtrtrt

1. Economic immigrants:

A. are defined as any international migrants that have an impact on the economy.

B. are defined as international migrants motivated by economic gain.

C. only impact the economy if they enter the country legally.

D. include not only people, but also any capital that migrates from another country.

AACSB: Analytic

Bloom's: Level 1 Remember

Difficulty: 1 Easy

Learning Objective: 22-01 Describe the extent of legal and illegal immigration into the United States.

Topic: Number of immigrants

2. About ________ of recent annual population growth in the United States is the result of

immigration.

A. one-tenth

B. one-fifth

C. one-third

D. one-half

AACSB: Analytic


Difficulty: 1 Easy



3. About ________ of recent annual labor force growth in the United States is the result of

immigration.

A. one-tenth

B. one-fifth

C. one-third

D. one-half

AACSB: Analytic


Difficulty: 1 Easy



4. In 2009, the greatest number of legal immigrants arriving in the United States came from:

A. India and El Salvador.

B. the Dominican Republic and Cuba.

C. China and Vietnam.

D. Mexico and China.

AACSB: Reflective Thinking


Difficulty: 1 Easy


Status: New


5. The U.S. Census Bureau estimates that from 2000 to 2009, the net inflow of unauthorized

immigrants was about:

A. 100,000 annually.

B. 250,000 annually.

C. 350,000 annually.

D. 700,000 annually.

AACSB: Analytic


Difficulty: 1 Easy


Status: New


6. 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.

AACSB: Analytic


Difficulty: 1 Easy



7. Approximately how many people became permanent legal residents of the United States in

2009?

A. 1.1 million.

B. 850,000.

C. 700,000.

D. 250,000.

AACSB: Analytic


Difficulty: 1 Easy


Status: New


8. According to the Office of Immigration Statistics, approximately what percentage of legal

immigrants in 2009 were parents, children, siblings, or other qualified relatives of legal

permanent U.S. residents?

A. 13 percent

B. 50 percent

C. 66 percent

D. 81 percent

AACSB: Analytic


Difficulty: 1 Easy



9. According to the Office of Immigration Statistics, approximately what percentage of legal

immigrants to the United States in 2009 were refugees?

A. 1.2 percent

B. 4.2 percent

C. 12.7 percent

D. 15.7 percent

AACSB: Analytic


Difficulty: 1 Easy


Status: New


10. According to U.S. Census Bureau data, approximately how many illegal immigrants are

estimated to be living continuously in the United States?

A. 5 million

B. 11 million

C. 23 million

D. 30 million

AACSB: Analytic


Difficulty: 1 Easy


Status: New


11. Which of the following countries has the largest number of immigrants, as a percentage of

the labor force (as of 2006)?

A. Austria

B. New Zealand

C. United States

D. Australia



Difficulty: 1 Easy

Learning Objective: 22-02 Discuss why economists view economic immigration as a personal human capital investment.

Status: New

Topic: Decision to migrate

12. 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.

AACSB: Analytic


Difficulty: 1 Easy



13. The primary motivation for economic immigration is:

A. the prospect of paying lower prices for goods and services.

B. to flee political oppression.

C. the opportunity to increase earnings and standard of living.

D. to reunite with family members.

AACSB: Analytic


Difficulty: 1 Easy



14. Which of the following cases best illustrates economic immigration?

A. Sophia migrated to Germany to rejoin her family.

B. Julio migrated to Australia to take a job paying three times what he earned at home.

C. Nguyen migrated to the United States to escape religious persecution.

D. Vladimir migrated to Great Britain to avoid political imprisonment.


Bloom's: Level 3 Apply

Difficulty: 2 Medium



15. Which of the following is least likely to be considered economic immigration?

A. Bob migrates to Canada to improve his access to health care.

B. Manuela migrates to the United States to open an authentic Italian cooking school.

C. Myklos migrates to Switzerland because the public pension system is more generous than in

his home country.

D. Alexander migrates to the United States because his political writings are censored in his

home country.






16. Kara is considering migrating to another country. Which of the following represents a cost

she will face if she decides to move?

A. Financial expenditures to transport herself and her belongings to her new country.

B. The income she currently earns in her home country.

C. The application fee for a green card.

D. All of these.






17. Juan wants to migrate from Mexico to the United States, but knows he cannot do so legally at

this time. If he decides to attempt to enter the U.S. illegally, which of the following costs will he

most likely not face?

A. Payment to an expediter ("coyote") to facilitate his entry into the U.S.

B. A green card application fee.

C. The loss of income from his current factory job.

D. All of these are costs he must incur to migrate.






18. A person will be more likely to migrate the:

A. greater the distance they will have to travel from their country of origin.

B. greater the wages in their prospective new country relative to wages in their home country.

C. fewer the number of "beaten paths" that exist to their prospective new country.

D. greater the number of children they have.


Bloom's: Level 2 Understand




19. Which of the following individuals is most likely to migrate to Switzerland, assuming that all

face equally good prospects of securing a good job after arrival?

A. Ricardo is 25 years old, single, and currently lives in Italy.

B. Ivan is 50 years old, married, and currently lives in Russia.

C. Maria is 40 years old, married with three children, and currently lives in Mexico.

D. Tran is 35 years old, single, speaks only Vietnamese and a little English, and currently lives in

Vietnam.






20. "Beaten paths" from one country to another:

A. discourage migration to that country because of a perception that all of the good jobs have

already been taken.

B. discourage migration by increasing the cost of moving.

C. encourage migration by providing employment contacts and job information.

D. are more prevalent the greater the distance between the two countries.






21. Which of the following statements is true about migration behavior?

A. Older workers are more likely to migrate than younger workers.

B. Migrants are more likely to migrate to countries farther rather than nearer to their home

country.

C. Single workers are more likely to migrate than workers with spouses and children.

D. Workers are less likely to migrate where "beaten paths" exist.






22. Immigrants tend to choose countries closer to their country of origin because:

A. bordering countries always have high wage rates.

B. there are fewer beaten paths to nearby countries, and therefore better prospects of finding a

good job.

C. neighboring countries usually speak the same language.

D. migration costs tend to be directly related to distance from the country of origin.






23. "Backflows" occur when:

A. two countries send immigrants to each other in approximately equal numbers.

B. physical capital flows into a country that has lost labor due to migration.

C. immigrants send financial payments back to family in their country of origin.

D. migrants return to their home country.

AACSB: Analytic


Difficulty: 1 Easy

Learning Objective: 22-03 Explain how immigration affects average wages; resource allocation; domestic output; and group income shares.

Topic: Economic effects of immigration

Assumptions: (1) The demand for labor in Alphania and Betania are as shown by DA and DB,

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.

24. Refer to the above diagram and assumptions. 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.


Bloom's: Level 4 Analyze

Difficulty: 3 Hard



Type: Graph

25. Refer to the above diagram and assumptions. If migration is costless and unimpeded, the

absolute wage bill will necessarily:

A. increase in Alphania if its labor demand curve is elastic.

B. increase in Betania if its labor demand curve is elastic.

C. decrease in Betania.

D. increase in Betania.



Difficulty: 3 Hard



Type: Graph

26. Refer to the above diagram and assumptions. If migration is costless and unimpeded,

business income will:

A. decrease in Betania, but increase in Alphania.

B. increase in Betania, but decrease in Alphania.

C. decrease in both Alphania and Betania.

D. increase in both Alphania and Betania.



Difficulty: 3 Hard



Type: Graph

27. Refer to the above diagram and assumptions. If migration is costless and unimpeded, the

average level of wages will:

A. decrease in Betania, but remain unchanged in Alphania.

B. increase in Alphania, but remain unchanged in Betania.

C. increase in Alphania and decrease in Betania.

D. increase in Betania and decrease in Alphania.



Difficulty: 3 Hard



Type: Graph

28. Refer to the above diagram and assumptions. After migration has ceased:

A. world output will have increased by mljh - MLJH.

B. Betania's output will have increased and Alphania's output will have decreased, but world

output will not have changed.

C. world output will have increased by gjhf - GJHF.

D. world output will have decreased by gjhf - GJHF.



Difficulty: 3 Hard



Type: Graph

29. Refer to the above diagram and assumptions. We would expect a flow of remittances from

migrants to:

A. decrease the national income loss in Betania.

B. increase the national income gain in Betania.

C. decrease the national income loss in Alphania.

D. decrease the national income gains in both countries.



Difficulty: 3 Hard



Type: Graph

30. Refer to the above diagram and assumptions. If unemployment, rather than full employment,

had initially existed in Alphania:

A. then Betania's loss of output would have been greater.

B. then Betania's gain of output would have been less.

C. its loss of output would have been less.

D. its loss of output would have been greater.



Difficulty: 3 Hard



Type: Graph

Symbols: Q = number of workers demanded; W = wage rate; and VTP = value of the cumulative

total product (output) of the particular number of workers.

Assumptions: (1) The current wage in Zinnia is $20 and the current wage in Marigold is $12; (2)

full employment exists in both countries.

31. Refer to the above data, symbols, and assumptions. At the current wage rate, the combined

number of workers in the two nations is:

A. 2.

B. 3.

C. 5.

D. 4.

AACSB: Analytic





Type: Table

32. Refer to the above data, symbols, and assumptions. If migration is costless and unimpeded:

A. no migration will occur.

B. migration will cause the wage in Marigold to fall.

C. 2 workers will move from Marigold to Zinnia.

D. 4 workers will move from Marigold to Zinnia.

AACSB: Analytic


Difficulty: 3 Hard



Type: Table

33. Refer to the above data, symbols, and assumptions. If migration is costless and unimpeded,

the wage in both countries will equalize at:

A. $16.

B. $18.

C. $20.

D. $14.

AACSB: Analytic


Difficulty: 3 Hard



Type: Table

34. Refer to the above data, symbols, and assumptions. If migration is costless and unimpeded,

the combined value of total product in the two countries will:

A. decline from $62 to $36.

B. decline from $120 to $70.

C. increase from $36 to $62.

D. increase from $62 to $70.

AACSB: Analytic


Difficulty: 3 Hard



Type: Table

35. Refer to the above data, symbols, and assumptions. Migration of workers will:

A. increase the combined value of total product but reduce the wage in Zinnia.

B. increase the combined value of total product but reduce the wage in Marigold.

C. reduce the combined value of total product but increase the wage in Marigold.

D. reduce the combined value of total product but increase the wage in Zinnia.

AACSB: Analytic


Difficulty: 3 Hard



Type: Table

36. Other things equal, the voluntary relocation of employable migrants from low-paying nations

to high-paying nations will:

A. increase business or capitalist incomes in the low-paying nations.

B. reduce real output in the world.

C. increase business or capitalist incomes in the high-paying nations.

D. reduce wage rates in the low-paying nations.



Difficulty: 3 Hard



37. The voluntary relocation of employable migrants from low-paying nations to high-paying

nations reduces:

A. wage rate disparities among nations.

B. business or capitalist income in the world.

C. labor productivity in the world.

D. total wage income in the world.






38. If the elasticity of demand for labor in the United States is unitary, immigration into the

United States can be expected to:

A. increase the average U.S. wage rate.

B. decrease the total amount of wage earnings that U.S. workers receive.

C. increase the total amount of wage earnings that U.S. workers receive.

D. leave the total amount of wage earnings that U.S. workers receive unchanged.



Difficulty: 3 Hard



39. Voluntary migration of skilled craftworkers from low-paying to high-paying nations

is most likely to be opposed by:

A. business groups in the high-paying nations.

B. craft workers who stay in the low-paying nations.

C. industrial unions in the high-paying nations.

D. craft unions in the high-paying nations.






40. "Remittances" occur when:

A. two countries send immigrants to each other in approximately equal numbers.

B. physical capital flows into a country that has lost labor due to migration.

C. immigrants send financial payments back to family in their country of origin.

D. migrants return to their home country.

AACSB: Analytic


Difficulty: 1 Easy



41. Which of the following will most likely cause backflows?

A. Poor information that leads a migrant to overestimate the net benefits of migration.

B. High moving costs.

C. Falling wages in a migrant's origin nation.

D. High levels of skill transferability.






42. Under what circumstances will immigration be most likely to equalize wage rates across

countries?

A. Immigration laws are strict.

B. Immigration is costless and unimpeded.

C. Information about job opportunities is limited.

D. Skill transferability is low.






43. Efficiency gains from migration:

A. will tend to be greater when workers migrate from nations with high unemployment to nations

experiencing full employment.

B. imply that all workers, domestic and migrant, are financially better off as a result of

migration.

C. will tend to be greater in countries experiencing "brain drain."

D. usually benefit one nation at the expense of another.






44. Worker migration will cause wage rates to equalize across two countries if all of the

following conditions are met except:

A. migration is motivated strictly by wage differentials.

B. neither nation restricts or interferes with migration.

C. both countries use the same currency.

D. migration has no cost.






45. Inflows of immigrant workers tend to reduce the wages of domestic-born workers. Under

which of the following circumstances is this least likely to occur?

A. Migration between countries is unimpeded.

B. Immigrant workers make remittances to their home country.

C. Immigrant workers and domestic-born workers are substitute resources.

D. Immigrant workers and domestic-born workers are complementary resources.






46. Which of the following statements is most accurate about the effects of migration?

A. Migration generally benefits the mover, but there is a net efficiency loss to the world.

B. Migration generally benefits everyone in both the origin and destination nation.

C. Migration generally benefits the mover and creates a net efficiency gain for the world.

D. Remittances cause the gains from immigration to be distributed unevenly.






47. Because there are costs to migration:

A. complete wage equalization is unlikely to occur, even if national governments impose no

restrictions on migration.

B. Migrants are more likely to move to countries far from their origin nation.

C. Migrant and domestic-born workers are unlikely to be substitute resources.

D. Wage equalization will only occur if migrant and domestic-born workers are complementary

resources.






48. Which of the following pairs of nations received the most remittances from their emigrants in

2009?

A. Mexico and Egypt

B. China and India

C. Pakistan and Iran

D. Vietnam and Thailand



Difficulty: 1 Easy


Status: New


49. Most remittances flow toward:

A. European nations.

B. advanced industrial nations.

C. developing nations.

D. North America.



Difficulty: 1 Easy



50. Remittances and backflows of experienced workers:

A. reduce the efficiency gains from migration.

B. reverse wage equalization that occurred with the original migration.

C. exacerbate the problem of "brain drain" from developing nations.

D. redistribute gains toward the original emigrant nation.






51. Unimpeded immigration between two nations tends to:

A. increase business income in both nations.

B. increase business income in the nation receiving immigrants, but reduce it in the nation

experiencing emigration.

C. reduce business income in the nation receiving immigrants, but increase it in the nation

experiencing emigration.

D. reduce business income in both nations.






52. Assuming migration is unimpeded and costless, which of the following statements is most

accurate about the effect of immigration on wages in both the origin and destination nations?

A. Wages will rise in the origin nation, fall in the destination nation, and overall wage income

must rise.

B. Wages will rise in both nations, and overall wage income must rise.

C. Wages will rise in the origin nation and fall in the destination nation, and the wage changes

must cancel each other, resulting in no net change in overall wage income.

D. Wages will rise in the origin nation and fall in the destination nation, but the effect on overall

wage income depends on the elasticities of labor demand.






53. Other things equal, immigration has what effects on the destination nation?

A. Reduced average wage rate, increased domestic output, increased business income, and lower

total wage income of native-born workers.

B. Reduced average wage rate, increased domestic output, increased business income, and

greater total wage income of native-born workers.

C. Increased average wage rate, increased domestic output, increased business income, and

greater total wage income of native-born workers.

D. Increased average wage rate, reduced domestic output, reduced business income, and lower

total wage income of native-born workers.






54. Suppose that Gamma is an advanced industrial country and Omega is a developing nation.

Omega will gain the most from having some of its people emigrate to Gamma if:

A. Omega is currently experiencing full employment.

B. the most skilled workers emigrate.

C. Omega currently suffers from high unemployment and the unemployed emigrate.

D. the costs to emigrate to Gamma are high.



Difficulty: 3 Hard



55. Between 1996 and 2006, cash welfare payments to immigrants:

A. rose by 20 percent.

B. rose by 10 percent.

C. fell by 73 percent.

D. fell by 39 percent.



Difficulty: 1 Easy



56. Scholarly estimates of the effects of immigration on the average American wage range from:

A. minus 5 to minus 2 percent.

B. plus 2 to plus 3 percent.

C. minus 5 to plus 3 percent.

D. minus 3 to plus 2 percent.



Difficulty: 1 Easy



57. According to estimates, what percentage of agricultural workers in the United States are

illegal immigrants?

A. 12

B. 17

C. 24

D. 43

AACSB: Analytic


Difficulty: 1 Easy

Learning Objective: 22-04 Relate how illegal immigration affects employment and wages in low-wage labor markets and impacts state and local

budgets.

Topic: Illegal immigration debate

58. According to estimates, what percentage of cleaning workers in the United States are illegal

immigrants?

A. 12

B. 17

C. 24

D. 43

AACSB: Analytic


Difficulty: 1 Easy


budgets.


Assumptions: 1) Employers in this market are willing and able to ignore minimum wage laws; 2)

Sdrepresents the supply of domestically-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.

59. Refer to the above figure. The equilibrium wage and level of employment are, respectively:

A. $5.50 and 250,000

B. $5.50 and 350,000

C. $8 and 350,000

D. $5.50 and 450,000

AACSB: Analytic


Difficulty: 3 Hard


budgets.


Type: Graph

60. Refer to the above figure. How many domestically-born (and legal immigrant) workers will

be hired at equilibrium?

A. 200,000

B. 250,000

C. 350,000

D. 450,000

AACSB: Analytic


Difficulty: 3 Hard


budgets.


Type: Graph

61. Refer to the above figure. How many illegal immigrant workers will be hired at equilibrium?

A. 200,000

B. 250,000

C. 350,000

D. 450,000

AACSB: Analytic


Difficulty: 3 Hard


budgets.


Type: Graph

62. Refer to the above figure. If the government effectively prevents illegal immigrants from

working in this labor market, the equilibrium wage and level of employment are, respectively:

A. $5.50 and 250,000

B. $5.50 and 350,000

C. $8 and 350,000

D. $5.50 and 450,000

AACSB: Analytic


Difficulty: 3 Hard


budgets.


Type: Graph

63. Refer to the above figure. 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:

A. 100,000 domestically-born workers will gain employment at the expense of 200,000 illegal

immigrants.

B. 200,000 domestically-born workers will gain employment at the expense of 200,000 illegal

immigrants.

C. 100,000 domestically-born workers will gain employment at the expense of 250,000 illegal

immigrants.

D. 100,000 domestically-born workers will gain employment at the expense of 100,000 illegal

immigrants.

AACSB: Analytic


Difficulty: 3 Hard


budgets.


Type: Graph

Assumptions: 1) Employers in this market are willing and able to ignore minimum wage laws; 2)

Sdrepresents the supply of domestically-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.

64. Refer to the above figure. The equilibrium wage and level of employment are, respectively:

A. $4.00 and 50,000

B. $4.00 and 60,000

C. $4.00 and 70,000

D. $6.50 and 60,000

AACSB: Analytic


Difficulty: 3 Hard


budgets.


Type: Graph

65. Refer to the above figure. How many domestically-born (and legal immigrant) workers will

be hired at equilibrium?

A. 20,000

B. 50,000

C. 60,000

D. 70,000

AACSB: Analytic


Difficulty: 3 Hard


budgets.


Type: Graph

66. Refer to the above figure. How many illegal immigrant workers will be hired at equilibrium?

A. 20,000

B. 50,000

C. 60,000

D. 70,000

AACSB: Analytic


Difficulty: 3 Hard


budgets.


Type: Graph

67. Refer to the above figure. If the government effectively prevents illegal immigrants from

working in this labor market, the equilibrium wage and level of employment are, respectively:

A. $4.00 and 50,000

B. $4.00 and 60,000

C. $6.50 and 60,000

D. $4.00 and 70,000

AACSB: Analytic


Difficulty: 3 Hard


budgets.


Type: Graph

68. Refer to the above figure. 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:

A. 10,000 domestically-born workers will gain employment at the expense of 20,000 illegal

immigrants.

B. 20,000 domestically-born workers will gain employment at the expense of 20,000 illegal

immigrants.

C. 10,000 domestically-born workers will gain employment at the expense of 70,000 illegal

immigrants.

D. 10,000 domestically-born workers will gain employment at the expense of 50,000 illegal

immigrants.

AACSB: Analytic


Difficulty: 3 Hard


budgets.


Type: Graph

69. Refer to the above figure. It suggests that:

A. illegal immigrant workers are in this market because these are jobs that domestic-born

workers are unwilling to do.

B. employment of domestic-born workers could be increased by 20,000 if illegal immigration

were blocked.

C. the presence of illegal immigrants in this labor market reduces wages, making these jobs less

attractive to domestic-born workers.

D. firms hiring from this labor market would be forced to shut down if illegal immigration were

blocked.



Difficulty: 3 Hard


budgets.


Type: Graph

70. Effectively removing all illegal immigrants from U.S. labor markets would:

A. reduce wages in the United States.

B. increase employment of domestic-born workers, but by a lesser amount than the number of

jobs lost by illegal workers.

C. increase employment of domestic-born workers at a rate of one-for-one with the jobs lost by

illegal workers.

D. increase employment of domestic-born workers by an amount greater than the number of jobs

lost by illegal workers.





budgets.


71. Compensating wage differentials:

A. refer to the wage premium given to domestic-born workers.

B. refer to the wage premium necessary to attract illegal immigrant workers.

C. discourage illegal immigrants from entering low wage labor markets.

D. will attract U.S. workers to undesirable jobs if the differential over less unpleasant work is

sufficiently high.





budgets.


72. What is the net effect of illegal immigration on total employment in the United States?

A. The net effect is zero, as illegal immigrant workers displace domestic-born workers on a one-

for-one basis.

B. Total employment increases, but with some substitution of illegal immigrants for domestic-

born workers.

C. Total employment decreases.

D. Total employment increases, with no displacement of or substitution for domestic-born

workers.





budgets.


73. 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.





budgets.


74. Which of the following statements is true about illegal immigration?

A. Illegal immigrants are often willing to work for less pay, keeping costs and prices for

consumer goods and services lower.

B. Illegal immigration reduces wages for U.S. workers who are complementary inputs.

C. Illegal immigration tends to reduce wages less for previous immigrants than for native-born

workers.

D. All of these.





budgets.

Status: New


75. The estimated fiscal burden of illegal immigrant households in the United States is:

A. $800 million per year.

B. $20 billion per year.

C. $50 billion per year.

D. $4.5 billion per year.

AACSB: Analytic


Difficulty: 1 Easy


budgets.


76. Which of the following statements is true about the effects of illegal immigration in the

United States?

A. Illegal immigrant workers displace domestic-born workers on a one-for-one basis.

B. Illegal immigration has a negative fiscal impact that falls most heavily on state and local

governments.

C. Illegal immigration negatively impacts wages and the standard of living for all domestic-born

workers.

D. All of these are true.



Difficulty: 1 Easy


budgets.


77. 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.



Difficulty: 1 Easy


budgets.


78. Illegal immigration positively contributes to the U.S. standard of living by reducing:

A. the fiscal burdens of state and local governments.

B. the average wages of domestic-born workers.

C. crime rates.

D. prices of goods and services produced with illegal immigrant labor.





budgets.


79. Economic theory suggests that the optimal level of immigration in the United States:

A. is zero.

B. occurs where the marginal benefit of the last immigrant equals or just exceeds the marginal

cost of the last immigrant.

C. occurs where the marginal benefit of the last immigrant equals or just exceeds zero.

D. occurs at the level where the difference between the marginal benefit and marginal cost of the

last immigrant is maximized.




Learning Objective: 22-05 Demonstrate how economics can inform current immigration discussions and attempts to reform immigration laws.

Topic: Optimal immigration

80. Other things equal, the optimal number of immigrants will be greater, the:

A. greater the education and skill level of immigrants.

B. lower the education and skill level of immigrants.

C. higher the unemployment rate of the destination nation.

D. greater the fiscal burden of each immigrant.






81. Refer to the above figure. The optimal level of immigration in this country:

A. is Q1.

B. is Q2.

C. is Q3.

D. cannot be determined with the information given



Difficulty: 3 Hard



Type: Graph

82. Refer to the above figure. An increase in the number of highly skilled and educated potential

immigrants would:

A. increase MB and increase the optimal quantity of immigrants.

B. reduce MB and reduce the optimal quantity of immigrants.

C. increase MC and increase the optimal quantity of immigrants.

D. reduce MC and reduce the optimal quantity of immigrants.



Difficulty: 3 Hard



Type: Graph

83. Refer to the above figure. If more criminals are in the mix of potential immigrants, how will

this affect the optimal quantity of immigrants?

A. It will increase MC and reduce the optimal quantity.

B. It will increase MC and raise the optimal quantity.

C. It will lower MC and raise the optimal quantity.

D. It will lower MC and reduce the optimal quantity.



Difficulty: 3 Hard



Type: Graph

84. Refer to the above 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.



Difficulty: 3 Hard



Type: Graph

85. Refer to the above figure. A weaker economy, characterized by higher unemployment rates,

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.



Difficulty: 3 Hard



Type: Graph

86. Other things equal, the greater the degree of complementarity between potential immigrants

and native-born workers, the:

A. lower the optimal quantity of immigrants.

B. lower the marginal benefit of additional immigrants.

C. greater the marginal cost of additional immigrants.

D. greater the optimal quantity of immigrants.






87. Other things equal, the optimal quantity of immigrants will be greater, the:

A. higher the unemployment rate in the destination nation.

B. greater the degree of substitutability between immigrant and domestic-born workers.

C. greater the degree of complementarity between immigrant and domestic-born workers.

D. lower the rate at which immigrants can be absorbed.






88. (Consider This) Since 1990, U.S. immigrants have founded ____ of every _____ public

companies financed by venture capital.

A. 1, 4

B. 1, 3

C. 1, 2

D. 2, 5



Difficulty: 1 Easy



89. (Consider This) According to the Council of Economic Advisers:

A. Skilled immigrants regularly displace domestic-born workers.

B. Skilled immigrants pay more in taxes than they receive in services from the government.

C. Immigration is a net drain on the U.S. economy and should be more tightly restricted.

D. Children of immigrants frequently lack the skills to perform well academically, particularly in

math and science.



Difficulty: 1 Easy



90. (Last Word) The Immigration Acts of 1921 and 1924:

A. set annual quotas that favored immigrants from western and northern Europe.

B. encouraged greater immigration from Asia.

C. encouraged greater immigration from South and Central America.

D. effectively blocked all immigration until 1965.

AACSB: Analytic


Difficulty: 1 Easy



91. (Last Word) Legislation proposed in 2007, if passed, would have:

A. eliminated immigration quotas.

B. increased the emphasis on allowing immigrants based on family connections rather than based

on education and skills.

C. provided a form of amnesty for illegal immigrants through the issuance of Z visas.

D. done all of these.

AACSB: Analytic


Difficulty: 1 Easy



92. (Last Word) "Z visas" in the proposed immigration reform of 2007:

A. would have allowed the nearly 12 million illegal immigrants to live and work legally in the

United States.

B. are required of all new immigrants to the United States.

C. are issued to refugees and those seeking political asylum, allowing immigration quotas to be

exceeded.

D. would have been issued primarily to guest workers seeking short-term employment in the

United States.

1rtrtrt

Documents

united states

illegal immigrants

number of immigrants

illegal immigration

extent of legal

percentage of legal

economic immigrants

result of immigration