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?
A) Domestic workers will experience some job losses.
B) Domestic workers who keep their job will experience an increase in earnings.
C) The market-clearing wage will fall.
D) Economic surplus will increase in the destination country, even net of immigrant earnings.
E) Some economic surplus will transfer from domestic workers to domestic firms.
Correct Answer:
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