Assuming Migration Is Unimpeded and Costless, Which of the Following

question 233

Multiple Choice

Assuming migration is unimpeded and costless, which of the following statements is most accurate about the effect of immigration on wages in both the origin and destination nations?

• A)Wages will rise in the origin nation and fall in the destination nation, and overall wage income must rise.
• B)Wages will rise in both nations, and overall wage income must rise.
• C)Wages will rise in the origin nation and fall in the destination nation, and the wage changes must cancel each other, resulting in no net change in overall wage income.
• D)Wages will rise in the origin nation and fall in the destination nation, but the effect on overall wage income depends on the elasticities of labor demand.

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The tendency to view members of an outgroup as more similar to each other than members of an ingroup.

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