An Increase in Immigration Would

question 9

Multiple Choice

An increase in immigration would

• A)have no effect on the labor supply curve and real wages.
• B)shift the labor supply curve to the left and increase real wages.
• C)shift both the labor demand curve and the labor supply curve to the left.
• D)shift the labor supply curve to the right and decrease real wages.

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Definitions:

Fixed Cost

Costs that do not change with the level of production or sales activities within a certain range or period.

Flexible Budget

A budget with the capacity to alter in response to shifts in activity volume or level.

Employee Salaries

The total amount paid to employees for their services over a specific period.

Wages

Payments made to employees as compensation for their labor, calculated on an hourly, daily, or piecework basis.