Studies Using Local Labor Markets as Units of Observation Estimate

question 31

Multiple Choice

Studies using local labor markets as units of observation estimate that the effects of immigration on native-born wages and employment are ________.This could be because ________.

• A) minimal; immigrants choose to locate in areas where demand is expanding
• B) minimal; internal migration by native-born workers is minimal
• C) large; immigrants and native-born workers are gross substitutes
• D) large; internal migration by native-born workers is large

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Definitions:

Public Choice Theory

An economic theory that studies how public decisions and policies are made, applying methodologies and understanding from economics to political science.

Self-interest

A principle in economics that suggests individuals usually act in a way that is most beneficial to themselves, based on their preferences and objectives.

Efficient Level Output

The level of production where average total costs are minimized and marginal costs equal marginal revenues.

Zero Profit

A situation in which a firm's total revenues match its total costs, resulting in neither profit nor loss.