The Increase in Labour Supply That Accompanies Immigrant Inflows May

question 8

Multiple Choice

The increase in labour supply that accompanies immigrant inflows may have no adverse effect on wages because of all of the following, except that:

• A) Immigration typically causes an increase in labour demand as immigrants purchase goods and services.
• B) Importing labour in the form of immigration can serve as a substitute for importing goods produced in their source country.
• C) The supply of lower-skilled labour may become more abundant.
• D) Immigrants may relieve the labour market shortage without any adverse effect on wages or unemployment.
• E) Immigration activity improves ties with the source country, which can increase demand in the labour market.

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