The Figure Given Below Shows the Income-Leisure Trade Off of an Individual.Figure

question 103

Multiple Choice

The figure given below shows the income-leisure trade off of an individual.Figure 16.5
AB and AC: Income constraints of the individual
I₁, I₂, and I₃ curves show the income leisure choices of the individual.
-Which of the following is an impact of the restriction on immigration on the domestic firms?

• A)The domestic firms would produce more and reap greater profits.
• B)The domestic firms would hire more unskilled laborers at lower wages.
• C)The domestic firms would charge low prices for their products.
• D)The domestic firms would have to pay higher wages and make less profit.
• E)The domestic firms would make above normal profits in the long run.

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Definitions:

Subcutaneous

Concerning anything that is situated below the skin layer.

Dermis

The thick layer of tissue below the epidermis in mammalian skin, containing blood capillaries, nerve endings, sweat glands, and hair follicles.

Dilate

To enlarge, expand in size; to increase the size of an opening.

Vessels

Hollow containers, especially those used to hold liquid, or large ships or boats.