Economic theory suggests that the optimal level of immigration in the United States

Question

Quizplus · Accepted Answer

Economic theory suggests that the optimal level of immigration in the United States is where the marginal benefit of the last immigrant equals or just exceeds the marginal cost of the last immigrant. This means that the benefits generated by the last immigrant admitted should be at least equal to the costs associated with admitting them. Thus, choice B is the best answer. Choice A is not correct because zero immigration would lead to a decline in the labor force and population coupled with the potential disruption of economic stability. Choice C is not correct because it does not take into account the cost of admitting immigrants. Choice D is not correct because it assumes that the difference between marginal benefits and marginal costs is always positive, which may not be the case.

Economic Theory Suggests That the Optimal Level of Immigration in the United