Measuring the Effects of Labor Migration Shows

question 112

Multiple Choice

Measuring the effects of labor migration shows:

• A) that as workers move, they disrupt their families and cause huge costs in the recipient nation.
• B) that most immigrants spend months trying to find work.
• C) that immigration benefits the recipient nation by raising the marginal product of capital, expanding labor-intensive production, and lowering prices of labor-intensive goods.
• D) that immigration is very harmful to the host nation because of a huge increase in the unemployment rate.

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Definitions:

Present Value

The valuation of an expected income stream determined by discounting the future income to the present using a discount rate.

Income Stream

A regular flow of money from an investment, property, or other financial assets.

Real Interest Rate

The interest rate adjusted for inflation, reflecting the real cost of borrowing or the real yield on savings.

Perfect Substitute

Two or more goods that can be used interchangeably with no loss of utility by the consumer.