One immigrant to country X increased her annual wage from $8000 (in her home country)to $10,000 in Country X.There are no costs to moving.At the same time,one native worker saw their wage fall from $15,000 to $10,000 because of the entry of the one immigrant into the labor market.The native worker was producing $16,000 worth of goods and the immigrant added another $11,000 worth of goods to total output.Both continue to work at $10,000.Given that nothing else happens,which of the following statements is true? Country X (not counting the immigrant)is

Question

Quizplus · Accepted Answer

Country X (not counting the immigrant) is better off by $1000.
Before the entry of the immigrant, the native worker was producing goods worth $16,000 and earning $15,000. After the entry of the immigrant, the total output increased to $27,000 and both workers earned $10,000 each. Thus, the native worker lost $5000 in wages, while the immigrant gained $2000 in wages. However, the total output increased by $11,000 ($16,000 - $5,000 lost wages + $11,000 immigrant's output). Therefore, country X is better off by $1000.

One Immigrant to Country X Increased Her Annual Wage from $8000