Which of the Following Statements Regarding Immigration Is True

question 16

Multiple Choice

Which of the following statements regarding immigration is true?

• A)For each employed immigrant there is an unemployed native worker.
• B)Immigration always results in lower native wages.
• C)All immigrants are low-skilled.
• D)Firms do not receive a substantial immigrant surplus.
• E)Consumers benefit from immigration via lower prices.

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Definitions:

Multiplier

In macroeconomics, a factor that quantifies how an initial change in spending will affect total economic output.

Crowding-out Effects

The phenomenon where increased government spending leads to a reduction in private sector spending.

Supply-siders

Supply-siders are economists or policymakers who believe that reducing tax rates and regulatory barriers to production and investment can stimulate supply, leading to economic growth.

Aggregate Supply

The total supply of goods and services that firms in an economy are willing and able to produce at different price levels during a specific time period.