Suppose That Workers Immigrate to Minnesota from Canada

question 103

Multiple Choice

Suppose that workers immigrate to Minnesota from Canada. Which of the following correctly describes what would happen in the market for labor in Minnesota?

• A) The equilibrium wage would increase, as would the quantity of labor. With more workers, the added output from an extra worker is larger.
• B) The equilibrium wage would decrease, as would the quantity of labor. With fewer workers, the added output from an extra worker is smaller.
• C) The equilibrium wage would decrease, and the quantity of labor would increase. With more workers, the added output from an extra worker is smaller.
• D) The equilibrium wage would decrease, and the quantity of labor would increase. With more workers, the added output from an extra worker is larger.

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Definitions:

Target Costing

A pricing strategy where the selling price of a product is determined first, and then the manufacturing cost is managed to meet that target price.

Price Control

Government or company policies aimed at regulating or setting prices for goods and services in a market.

Economic Value

The quantification of the advantage that a product or service delivers to an economic participant.

Variable Cost

Costs that vary in total in direct proportion to changes in the level of activity or production volume.