Assuming Labor Demand Is Downward Sloping and That the Labor

question 27

Multiple Choice

Assuming labor demand is downward sloping and that the labor market is competitive, what happens to national income as a result in immigration?

• A)National income increases by more than the total earnings of immigrants.
• B)National income increases by less than the total earnings of immigrants.
• C)National income decreases by more than the total earnings of immigrants.
• D)National income decreases by less than the total earnings of immigrants.
• E)Immigrants have no effect on national income because they are not citizens.

---

Definitions:

Employer

An individual or organization that hires and pays individuals for their labor or services.

FICA

Federal Insurance Contributions Act; a U.S. law that requires a payroll tax on both employees and employers to fund Social Security and Medicare.

Social Security

A government program providing economic assistance to people with an inadequate or no income.

Yellow-Dog Contracts

A type of employment agreement where the worker promises not to join a labor union during the term of employment.