Allowing More Immigration of Unskilled Workers Will Lower the Real

question 54

Multiple Choice

Allowing more immigration of unskilled workers will lower the real wages of skilled workers if

• A) unskilled workers are substitutes for skilled workers and the substitution effect dominates the scale effect.
• B) unskilled workers are complements to skilled workers.
• C) Both A and B.
• D) Neither A nor B.

---

Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price level, at a given time.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price during a specified time period.

Price

The price expected, requisite, or delivered in remuneration for an object or service.

Market Price

The contemporary valuation at which a commodity or service can be acquired or disposed of in a commercial environment.