In an Economy with Two Industries, an Increase in

question 125

Multiple Choice

In an economy with two industries, an increase in
Immigration will:

• A)cause employment to increase in both in the long run.
• B)cause employment to increase in one and decrease in the other in the short run.
• C)cause employment to increase in one and decrease in the other in the long run.
• D)cause a decline in wages in both industries in the long run.

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Definitions:

Single Life Annuity Contract

An insurance policy that provides a fixed or variable payment to an annuitant at regular intervals for their lifetime.

Tax-free Amount

An amount or income received that is not subject to income tax by the taxpayer.

Qualified Pension Plan

A retirement plan that meets the requirements of the Internal Revenue Code, offering tax benefits to the entity that establishes the plan and its participants.

Simplified Method

A way to calculate tax deductions or credits that reduces complexity, often used for retirement distribution calculations or home office deductions.