Assuming labor demand is downward sloping and that the labor market is competitive, what happens to national income as a result in immigration?
A)National income increases by more than the total earnings of immigrants.
B)National income increases by less than the total earnings of immigrants.
C)National income decreases by more than the total earnings of immigrants.
D)National income decreases by less than the total earnings of immigrants.
E)Immigrants have no effect on national income because they are not citizens.

Question

Quizplus · Accepted Answer

Immigration increases the labor supply, leading to more production and potentially higher national income. The increase in national income is typically more than the total earnings of immigrants due to increased productivity and economic activity.

Assuming Labor Demand Is Downward Sloping and That the Labor