The figure given below shows the income-leisure trade off of an individual.Figure 16.5
AB and AC: Income constraints of the individual
I 1 , I 2 , and I 3 curves show the income leisure choices of the individual.
-Which of the following is true of illegal immigrants?

Question

The figure given below shows the income-leisure trade off of an individual.Figure 16.5
  AB and AC: Income constraints of the individual
I 1 , I 2 , and I 3 curves show the income leisure choices of the individual.
-Which of the following is true of illegal immigrants?

Quizplus · Accepted Answer

Illegal immigrants are willing to work for lower wages and do not require benefits, which helps some firms lower operating costs and earn more profit. This may result in increased production and sales, which can benefit the economy as a whole. However, this does not necessarily mean that they improve the quality of goods and services produced or increase the wage rate in the U.S. unskilled labor market. Additionally, they may compete with native workers for jobs and potentially reduce the supply of unskilled labor in the United States.

The Figure Given Below Shows the Income-Leisure Trade Off of an Individual.Figure