Question 1

If a two-person household moves from Miami to Atlanta, which of the following can describe the household?

Accepted Answer

E

Question 2

Which of the following is true?

Accepted Answer

A

Question 3

The Roy model concerns

Accepted Answer

The Roy model pertains to the selection of skills associated with immigration flows, specifically the decision-making process of immigrants in choosing where to migrate to and what job to pursue based on their skills and wages offered.

Question 4

If the supply of unskilled domestic labor and the supply of unskilled immigrant labor are both perfectly inelastic, then the typical market equilibrium will be such that:

Accepted Answer

When both domestic and immigrant labor supplies are perfectly inelastic, the total supply of labor increases with immigration, leading to a decrease in wages for all unskilled labor, including domestic workers.

Question 5

A couple is considering moving to Tampa from Chicago. The cost of moving for Crystal is $300 while the cost of moving for Amelia is $600. Crystal earns $500 in Chicago and $550 in Tampa. Amelia earns $200 in Chicago and $1000 in Tampa. Will they move as a couple?

Accepted Answer

The answer of A couple is considering moving to Tampa...

Question 6

Which of the following is least likely to affect the net gain to migration?

Accepted Answer

A general increase in the national price level would have little to no impact on net gain to migration. The other options directly impact either the source state or destination state, or the costs associated with migration, all of which would affect the net gain to migration.

Question 7

Suppose the age-wage profile of immigrants has been increasing over time. That is, the age-wage profile of immigrants in the 1990s is higher than the age-wage profile of immigrants in the 1980s, which is in turn higher than the wage-age profile of immigrants in the 1970s. In this case, if one uses cohort analysis to estimate the age-wage profile of immigrants, which of the following is possible to find:

Accepted Answer

Cohort analysis looks at the wage profile of groups of individuals who were born in the same year and compares their wages over time. If the age-wage profile of immigrants has been increasing over time, then the cohort analysis may show a horizontal age-wage profile because individuals in each cohort are earning higher wages as they age. This means that there is not a significant difference in wage growth between different age groups within the same cohort. Option A is incorrect because a negative return to moving costs would indicate that individuals who move to a new country are worse off than if they had stayed in their home country. Option C and D are not necessarily true based on the information given. Finally, option E is unlikely because there is no indication that the immigration process is negatively selecting individuals based on their wages or other factors.

Question 8

Which is not a factor that generates return and/or repeat migration flows?

Accepted Answer

The answer of Which is not a factor that generates...

Question 9

When immigrant labor is complementary to native labor in the production process, a more open immigration policy will likely result in all but which of the following?

Accepted Answer

When immigrant labor is complementary to native labor, a more open immigration policy can increase overall economic efficiency, increase overall native employment, shift the labor demand curve for native workers outwards, and increase the value placed on native labor by firms. However, lower wages may not be paid to native workers as immigrant workers may also help to lower the cost of production, resulting in higher profits for firms.

Question 10

Negative selection in a migration model means that

Accepted Answer

Negative selection in a migration model means that immigrants from the source country are not highly skilled relative to labor in the destination country. Therefore, the best choice is B. Choices A and E are incorrect, as they suggest that immigrants are highly skilled or that migration is not selective. Choices C and D are incorrect because they do not relate to the concept of negative selection in migration models.

Question 11

Roughly how many people immigrated legally to the United States in 2011?

Accepted Answer

In 2011, approximately 1 million people immigrated legally to the United States, according to data from the Department of Homeland Security.

Question 12

Which of the following statements is associated with the standard migration model?

Accepted Answer

The standard migration model assumes that the decision to move is made based on the expected increase in the household's overall utility. This means that the move is expected to improve the family's well-being in some way, such as by providing better job opportunities, access to education, or other benefits. Return and repeat migration are not necessarily associated with the standard model, as they may reflect different motivations or outcomes of migration. Moving for job reasons may or may not be at the expense of family desires, depending on the specific circumstances of the move.

Question 13

Suppose an economy exhibits general conditions of downward sloping labor demand, upward sloping supplies of domestic and immigrant labor, and a competitive labor market. Which of the following is not a likely outcome of immigration?

Accepted Answer

Since the economy has a downward sloping labor demand curve, the arrival of immigrant workers will cause a shift in the supply curve, leading to a lower market clearing wage. As a result, domestic workers may lose their jobs or experience a reduced wage rate. The economic surplus in the destination country may increase because of the availability of cheaper labor, but not necessarily net of immigrant earnings. Some of the economic surplus may transfer from domestic workers to domestic firms in the form of higher profits. However, it is not likely that domestic workers who keep their job will experience an increase in earnings due to the arrival of immigrant workers.

Question 14

Which of the following statements about self-selection and immigration flows into the United States is false?

Accepted Answer

Negative selection refers to a situation where individuals who migrate are those with lower skills or earnings potential compared to the average in their home country. This typically happens when the destination country offers better opportunities for low-skilled workers than the source country. Statement D incorrectly describes negative selection; it actually describes a scenario that could lead to positive selection, where individuals with higher skills or earnings potential are more likely to migrate due to better returns on their skills in the destination country.

Question 15

Which of the following statements about migration is not true?

Accepted Answer

Migration costs are generally higher for married couples compared to single-person households due to the complexity of moving multiple people and potentially coordinating job changes for both partners.

Question 16

By all accounts, the annual economic gains to immigration in the United States are

Accepted Answer

According to most studies, the annual economic gains to immigration in the United States are relatively small at about $36 billion, or 0.24 percent of GDP. While the exact number may vary slightly between studies, the consensus is that the economic benefits of immigration are positive but not as large as some may believe.

Question 17

Suppose there is currently positive selection of immigrants to the United States. What would happen to immigration to the U.S. if the return to skills were to fall in the United States?

Accepted Answer

The answer of Suppose there is currently positive selection of...

Question 18

Which of the following is not likely to prevent some people from migrating?

Accepted Answer

A lucrative job offer in a different city is likely to encourage migration rather than prevent it.

Question 19

In a standard Roy model, migration can lead to an increase in average skills in both locations. What is necessary for this to happen?

Accepted Answer

When workers who migrate are below-average in skill relative to their source country but above-average relative to the destination country, it can lead to an increase in average skills in both locations.

Question 20

Which of the following regarding internal migration in the United States is not true?

Accepted Answer

Internal migration in the United States does not necessarily equalize wages across regions. In fact, wages can vary greatly between regions even after accounting for cost of living differences.

Quiz 8: Labor Mobility