Refer to the Figure

question 173

Multiple Choice

Refer to the figure. An increase in the number of highly motivated and skilled potential immigrants will

• A)reduce MB and increase MC, lowering the optimal quantity of immigrants.
• B)increase MB and reduce MC, raising the optimal quantity of immigrants.
• C)increase both MB and MC, and the effect on the optimal quantity is uncertain.
• D)reduce both MB and MC, and the effect on the optimal quantity is uncertain.

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Definitions:

Fiscal Policy

Government policies relating to taxation and spending to influence the economy.

Aggregate Demand

The total demand for all goods and services within a particular market or economy at a given overall price level and in a given time period.

Real GDP

Gross Domestic Product adjusted for inflation, which provides a more accurate representation of an economy's size and how it's growing over time.

Disposable Income

Money left after taxes and compulsory fees have been subtracted, which can be used for spending or saving according to personal preference.