Which of the following best describes the impact of immigration on complementary resources?
A) The lower wage rate resulting from immigration reduces production costs, creating a business-income effect that increases the demand for complementary resources.
B) The lower wage rate resulting from immigration reduces production costs, creating an output effect that decreases the demand for complementary resources.
C) The higher wage rate resulting from immigration increases production costs, creating an output effect that increases the demand for complementary resources.
D) The lower wage rate resulting from immigration reduces production costs, creating an output effect that increases the demand for complementary resources.
Correct Answer:
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Q203: Suppose the elasticity of labor demand is
Q204: The simple immigration model assumes that the
Q205: The elimination of barriers to the international
Q206: The situation where movers are less capable
Q207: Which of the following countries received the
Q209: Native-born workers may not be harmed by
Q210: The simple immigration model assumes that the
Q211: If immigration increases the productivity of domestic
Q212: Between the 1970s and 1996, immigrants
A)were more
Q213: Other things equal,
A)owners of U.S. businesses benefit
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