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The Increase in Labour Supply That Accompanies Immigrant Inflows May

Question 11

Multiple Choice

The increase in labour supply that accompanies immigrant inflows may have no adverse effect on wages because of all of the following, except that:


A) Immigration typically causes an increase in labour demand as immigrants purchase goods and services.
B) Importing labour in the form of immigration can serve as a substitute for importing goods produced in their source country.
C) The supply of lower-skilled labour may become more abundant.
D) Immigrants may relieve the labour market shortage without any adverse effect on wages or unemployment.
E) Immigration activity improves ties with the source country, which can increase demand in the labour market.

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