Deck 25: Immigration

Question 1

If all nations prohibited the international migration of labor, we would expect world output to decline.

Answer 1

True

Question 2

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

Answer 2

False

Question 3

Economists treat economic immigration as a human capital investment decision.

Answer 3

True

Question 4

Illegal immigration can result in higher wages for domestic-born workers who are complementary inputs.

Question 5

The U.S. Census Bureau estimates that, in recent years (2008-2017), more than one million illegal immigrants enter the United States each year.

Question 6

Illegal immigration helps improve the standard of living for U.S. citizens by keeping prices lower.

Question 7

The existence of "beaten paths" tends to discourage immigration because of the perception that job prospects have been exhausted.

Question 8

Welfare payments to immigrants have steadily increased since 1996.

Question 9

Illegal immigrants overall contribute more in taxes than they receive in services from state and local governments.

Question 10

There were over one million legal immigrants into the United States in 2017.

Question 11

If the demand for labor in a country receiving immigrants is inelastic, the immigration will increase the total wages paid in that country.

Question 12

Welfare reform in 1996 reversed the trend of growing welfare payments to immigrants.

Question 13

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

Question 14

Any migration that affects the economies of the countries involved is referred to as "economic immigration."

Question 15

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

Question 16

Economic research consistently finds that immigration negatively affects the average American wage.

Question 17

"Backflows" are payments made by immigrants back to their home countries.

Question 18

Other things equal, younger workers are more likely to migrate than older workers.

Question 19

If unemployed workers leave a nation, the standard of living (national income per capita)will rise in that nation.

Question 20

Economic models of illegal immigration suggest that domestic-born workers avoid certain types of work more because the inflow of immigrants has reduced wages, rather than because the work is unpleasant.

Question 21

In 2017, refugees constituted a bigger portion of total legal immigration into the U.S. than employment-based immigrants.

Question 22

In 2017, immigrants made up a larger portion of the labor force in the U.S. than in Australia.

Question 23

Illegal immigration has little effect on the average level of wages in the United States.

Question 24

There was a big spike in legal immigration into the U.S. in 1989-1991, resulting from an amnesty program through which many formerly illegal immigrants became legal residents.

Question 25

In 2017, China overtook Mexico to become the number one country of origin of U.S. legal immigrants.

Question 26

The main driver of economic immigration is the opportunity to improve earnings and living standards.

Question 27

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.

Question 28

An increase in the mobility of labor across nations tends to decrease the world's output of goods and services.

Question 29

The simple immigration model suggests that labor migration raises the wage rate in the country of origin while reducing the wage rate in the host country.

Question 30

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

Question 31

Current U.S. immigration law is heavily weighted toward family reunification.

Question 32

Many of the recent concerns about immigration in the U.S. have focused on green-card holders.

Question 33

U.S. immigrants (legal and illegal combined)have lower prison rates than the native-born population.

Question 34

The simple immigration model suggests that, for a high-wage country like the United States, immigration tends to reduce domestic output as well as the total income of businesses.

Question 35

Economic theory suggests that immigration should be allowed into a country until the marginal benefit of the last immigrant is zero.

Question 36

The arguments that illegal immigrants do not take away jobs from legal residents or that illegal immigrants displace legal residents from jobs on a one-to-one basis are both false.

Question 37

All illegal immigrants enter the U.S. and arrive here illegally.

Question 38

In recent years, immigration has contributed an insignificant amount to U.S. population growth.

Question 39

Other things equal, larger wage differences between nations tend to increase the flow of immigration toward the country with higher wage opportunities.

Question 40

Remittances by Mexican workers in the United States to their families in Mexico tend to reduce the gains from immigration to the United States and increase it for Mexico.

Question 41

Which of the following countries has the largest number of immigrants, as a percentage of the labor force (as of 2017)?

A)Austria
B)New Zealand
C)United States
D)Australia

Question 42

Suppose that Rosa is considering migration to another country. To move, she will have to spend $4,000 on transportation and $6,000 in application and other processing fees. Rosa's stream of future earnings in her home country is $400,000. She expects to earn a stream of future earnings of $750,000 in another country. Based on this information, Rosa's explicit cost of migrating is

A)$400,000.
B)$10,000.
C)$410,000.
D)$350,000.

Question 43

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 $18, and the current wage in Marigold is $14; (2)full employment exists in both countries. If migration is costless and unimpeded, the wage in both countries will equalize at

A)$16.
B)$18.
C)$20.
D)$14.

Question 44

According to the Office of Immigration Statistics, approximately what percentage of legal immigrants to the United States in 2017 were refugees or diversity immigrants?

A)27 percent
B)66 percent
C)16 percent
D)18 percent

Question 45

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.

Question 46

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

Question 47

Suppose that Rosa is considering migration to another country. To move, she will have to spend $4,000 on transportation and $6,000 in application and other processing fees. Rosa's stream of future earnings in her home country is $400,000. She expects to earn a stream of future earnings of $750,000 in another country. Based on this information, Rosa will decide to migrate as long as the implicit costs of leaving her friends and family and adjusting to a new culture are

A)greater than $410,000.
B)less than $350,000.
C)less than $360,000.
D)less than $340,000.

Question 48

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 $18, and the current wage in Marigold is $14; (2)full employment exists in both countries. If migration is costless and unimpeded,

A)no migration will occur.
B)migration will cause the wage in Marigold to fall.
C)1 worker will move from Marigold to Zinnia.
D)2 workers will move from Marigold to Zinnia.

Question 49

According to U.S. Census Bureau data (2015), approximately how many illegal immigrants are estimated to be living continuously in the United States?

A)5 million
B)12 million
C)23 million
D)30 million

Question 50

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.At the current wage rate, the combined number of workers in the two nations is

A)2.
B)3.
C)5.
D)4.

Question 51

Suppose that Rosa is considering migration to another country. To move, she will have to spend $2,000 on transportation and $5,000 in application and other processing fees. Rosa's stream of future earnings in her home country is $300,000. She expects to earn a stream of future earnings of $700,000 in another country. Based on this information, Rosa's implicit cost of migrating is

A)$7,000.
B)$300,000.
C)$307,000.
D)$400,000.

Question 52

Economic analysis suggests that immigration can either benefit or harm a nation, depending on the number of immigrants, their education, skills, and work ethic, and the rate at which they are absorbed into the economy.

Question 53

In 2017, the greatest number of legal immigrants arriving in the United States came from

A)India and North Korea.
B)the Dominican Republic and Cuba.
C)China and Vietnam.
D)Mexico and China.

Question 54

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 affect the economy if they enter the country legally.
D)include not only people, but also any capital that migrates from another country.

Question 55

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. 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.

Question 56

The U.S. Census Bureau estimates that from 2000 to 2009, the net inflow of illegal immigrants was about

A)100,000 annually.
B)250,000 annually.
C)350,000 annually.
D)700,000 annually.

Question 57

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 $18, and the current wage in Marigold is $10; (2)full employment exists in both countries.Refer to the given 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.

Question 58

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

Question 59

According to the Office of Immigration Statistics, approximately what percentage of legal immigrants in 2017 were parents, children, siblings, or other qualified relatives of legal permanent U.S. residents?

A)16 percent
B)57 percent
C)66 percent
D)81 percent

Question 60

Approximately how many people became permanent legal residents of the United States in 2017?

A)1,127,167
B)854,200
C)990,550
D)1,252,000

Question 61

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.

Question 62

"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.

Question 63

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

Question 64

"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.

Question 65

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 United States illegally, which of the following costs will he most likely not face?

A)payment to an expediter ("coyote")to facilitate his entry into the United States
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.

Question 66

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.

Question 67

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 loss of the income she currently earns in her home country
C)the application fee for a green card
D)all of these

Question 68

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.At the current wage rate, the combined number of workers in the two nations is

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.

Question 69

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. If migration is costless and unimpeded,

A)2.
B)3.
C)5.
D)4.

Question 70

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, 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.

Question 71

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.

Question 72

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.

Question 73

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. If migration is costless and unimpeded, the combined value of total product in the two countries will

A)$16.
B)$18.
C)$20.
D)$14.

Question 74

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. If migration is costless and unimpeded, the wage in both countries will equalize at

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.

Question 75

Which of the following cases best illustrates economic immigration?

A)Sophia migrated to Germany to re-join 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.

Question 76

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.

Question 77

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.

Question 78

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.

Question 79

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.

Question 80

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.Refer to the given data, symbols, and assumptions. Migration of workers 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.