Which of the Following Explains Why Immigration Has Led to an Increase

question 75

Multiple Choice

Which of the following explains why immigration has led to an increase in income inequality in the U.S.?

• A)Immigration has increased the supply of experienced and skilled laborers who effectively earn more than the U.S.workers.
• B)Immigration has lowered the wage earnings of the U.S.residents and increased the income of the capital owners.
• C)The proportion of immigrants in the working-age population has far exceeded the proportion of U.S.workers
• D)The immigrants are more educated than the domestic residents

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Definitions:

Efficient Market

A financial market theory stating prices fully reflect all available information, making it impossible to consistently achieve higher returns.

Concentrating Investment

Allocating a significant portion of an investment portfolio to a single investment or a small group of investments, increasing potential risk and return.

Systematic Risk Principle

The concept that the overall market or economy has inherent risks that affect all investments to some degree, and these risks cannot be eliminated through diversification.

Variance

A measure of the dispersion or spread of a set of data points or investment returns, reflecting how much the data points differ from the mean.