Immigration increases the labor supply in the U.S., potentially lowering wages and benefiting U.S. business owners by reducing labor costs. Conversely, emigration reduces the labor supply in Mexico, potentially increasing wages and hurting Mexican business owners by increasing labor costs.

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Other Things Equal

Question 144

Multiple Choice

Other things equal,

A) owners of U.S. businesses benefit from immigration and owners of Mexican businesses are hurt by emigration.
B) owners of U.S. businesses are hurt by immigration and owners of Mexican businesses benefit from emigration.
C) owners of U.S. businesses benefit from emigration and owners of Mexican businesses are hurt by immigration.
D) the benefit owners of U.S. businesses receive from immigration is offset by the losses experienced by owners of Mexican businesses due to emigration.

Correct Answer: