978-1259723223 Test Bank TBChap025 Part 3

25–41

written consent of McGraw-Hill Education.

Blooms: Understand

Difficulty:

02 Medium

Learning Objective: 25–04 Relate how illegal immigration affects employment and wages

in low-wage labor markets and impacts state and local budgets.

Test Bank: I

Topic:

The Illegal Immigration Debate

Type: Graph

71.

Effectively removing all illegal immigrants from U.S. labor markets would

72.

Compensating wage differentials

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73.

What is the net effect of illegal immigration on total employment in the United States?

74.

Illegal immigration tends to

75.

Which of the following statements is true about illegal immigration?

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C.

Illegal immigration tends to reduce wages less for previous immigrants than for native-born

workers.

D.

All of the other answers are correct.

76.

The estimated fiscal burden of illegal immigrant households in the United States is

77.

Which of the following statements is true about the effects of illegal immigration in the

United States?

25–44

written consent of McGraw-Hill Education.

in low-wage labor markets and impacts state and local budgets.

Test Bank: I

Topic:

The Illegal Immigration Debate

78.

U.S. immigrants (legal and illegal) have

79.

Illegal immigration positively contributes to the U.S. standard of living by reducing

80.

Economic theory suggests that the optimal level of immigration in the United States

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the last immigrant is maximized.

81.

Other things equal, the optimal number of immigrants will be greater, the

82.

Refer to the figure. The optimal level of immigration in this country

83.

Refer to the figure. An increase in the number of highly skilled and educated potential

immigrants would

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D.

reduce MC and reduce the optimal quantity of immigrants.

84.

Refer to the figure. If more criminals are in the mix of potential immigrants, how will this

affect the optimal quantity of immigrants?

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Test Bank: I

Topic:

Optimal Immigration

Type: Graph

85.

Refer to the figure. An increase in the number of highly motivated and skilled potential

immigrants will

86.

Refer to the figure. A weaker economy, characterized by higher unemployment rates, will

87.

Other things equal, the greater the degree of complementarity between potential immigrants

and native-born workers, the

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88.

Other things equal, the optimal quantity of immigrants will be greater, the

89.

(Consider This) Since 1990, U.S. immigrants have founded of every public companies

financed by venture capital.

90.

(Consider This) According to the Council of Economic Advisers,

91.

(Last Word) As a result of the Great Recession of 2007–2009, illegal immigration to the

United States

92.

(Last Word) Which of the following best explains why the net flow of illegal immigrants to

the United States has been close to zero (particularly since the Great Recession)?

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written consent of McGraw-Hill Education.

AACSB: Knowledge Application

Acc e s s i b i l i t y :

Keyboard Navigation

Blooms: Understand

Difficulty:

02 Medium

Learning Objective: 25–02 Discuss why economists view economic immigration as a

personal human capital investment.

Test Bank: I

Topic:

The Decision to Migrate

True / False Questions

93.

Any migration that affects the economies of the countries involved is referred to as

“economic immigration.”

94.

There were over one million legal immigrants into the United States in 2013.

95.

The U.S. Census Bureau estimates that more than one million illegal immigrants enter the

United States each year.

25–53

written consent of McGraw-Hill Education.

AACSB: Knowledge Application

Acc e s s i b i l i t y :

Keyboard Navigation

Blooms: Understand

Difficulty:

02 Medium

Learning Objective: 25–01 Describe the extent of legal and illegal immigration into the

United States.

Test Bank: I

Topic:

Number of Immigrants

96.

Economists treat economic immigration as a human capital investment decision.

97.

The existence of “beaten paths” tends to discourage immigration because of the perception

that job prospects have been exhausted.

98.

Other things equal, younger workers are more likely to migrate than older workers.

25–54

written consent of McGraw-Hill Education.

Learning Objective: 25–02 Discuss why economists view economic immigration as a

personal human capital investment.

Test Bank: I

Topic:

The Decision to Migrate

99.

Welfare payments to immigrants have steadily increased since 1996.

100.

Welfare reform in 1996 reversed the trend of growing welfare payments to immigrants.

101.

Economic research consistently finds that immigration negatively affects the average

American wage.

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102.

If all nations prohibited the international migration of labor, we would expect world

output to decline.

103.

If the demand for labor in a country receiving immigrants is inelastic, the immigration

will increase the total wages paid in that country.

104.

Business income will decrease in the nation from which workers emigrate.

105.

If unemployed workers leave a nation, the standard of living (national income per capita)

will rise in that nation.

106.

“Backflows” are payments made by immigrants back to their home countries.

107.

Illegal immigrants displace domestic-born workers on a one-for-one basis.

108.

Illegal immigration can result in higher wages for domestic-born workers who are

complementary inputs.

25–57

written consent of McGraw-Hill Education.

Acc e s s i b i l i t y :

Keyboard Navigation

Blooms: Understand

Difficulty:

02 Medium

Learning Objective: 25–04 Relate how illegal immigration affects employment and wages

in low-wage labor markets and impacts state and local budgets.

Test Bank: I

Topic:

The Illegal Immigration Debate

109.

Economic models of illegal immigration suggest that domestic-born workers avoid certain

types of work more because the inflow of immigrants has reduced wages, rather than

because

the work is unpleasant.

110.

Removing all illegal immigrants would expand domestic-born employment by an amount

equal to the number of illegal immigrants removed.

111.

Illegal immigration helps improve the standard of living for U.S. citizens by keeping

prices lower.

25–58

written consent of McGraw-Hill Education.

Blooms: Understand

Difficulty:

02 Medium

Learning Objective: 25–04 Relate how illegal immigration affects employment and wages

in low-wage labor markets and impacts state and local budgets.

Test Bank: I

Topic:

The Illegal Immigration Debate

112.

Illegal immigrants overall contribute more in taxes than they receive in services from

state and local governments.

113.

U.S. immigrants (legal and illegal combined) have lower prison rates than the native-born

population.

114.

Illegal immigration has little effect on the average level of wages in the United States.

25–59

written consent of McGraw-Hill Education.

in low-wage labor markets and impacts state and local budgets.

Test Bank: I

Topic:

The Illegal Immigration Debate

115.

Economic theory suggests that immigration should be allowed into a country until the

marginal benefit of the last immigrant is zero.

116.

The optimal level of immigration occurs where marginal benefit is at its greatest.

Multiple Choice Questions

117.

Which of the following groups does not fit in with the others?

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United States.

Test Bank: II

Topic:

Number of Immigrants

118.

Which of the following groups does not belong with the others?

119.

Between 2004 and 2013, legal immigration into the U.S. averaged about

120.

Beginning in 1990, the Federal government