One immigrant to country X increases his wage from $13,000 (in their home country)to $15,000.There are no costs to moving.A native worker was earning $15,000.However,the immigrant replaces him and the native instead lives and works at home,which he values at $15,000.Which of the following statements is true?

Question

Quizplus · Accepted Answer

DExplanation:C) The immigrant's wage increases from $13,000 to $15,000, indicating a gain. If the immigrant is taxed $1,000, their income would still be higher than in their home country, and the tax proceeds could be used to compensate the native worker and the employer, potentially leaving all parties better off than without immigration.D) The immigrant gains by moving and earning more. The native worker, while replaced, values their new situation (living and working at home) at the same $15,000, indicating no net loss. The employer presumably benefits from hiring the immigrant (otherwise, they wouldn't do it), suggesting that overall, there is no net loss or gain when considering all parties together.

One Immigrant to Country X Increases His Wage from $13,000