Which of the Following Can NOT Explain Why Wages in Miami

question 6

Multiple Choice

Which of the following can NOT explain why wages in Miami did not fall and unemployment rates did not increase after the Mariel boatlift?

• A) The labor demand curve shifted to the right.
• B) Some people moved out of Miami in response to the influx.
• C) Miami's economy went through a rapid "boom" right after the immigrants arrived.
• D) A high percentage of the immigrants were unskilled workers.

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Definitions:

External Costs

External costs, also known as negative externalities, are the costs experienced by third parties who are not involved in an economic transaction, often not reflected in market transactions.

Market Price

The market price at which you can currently buy or sell a service or asset.

Efficient Equilibrium

A state in an economy where every resource is optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.

External Benefits

Benefits resulting from a transaction that affect parties not directly involved in the transaction, often leading to positive outcomes for society.