1. The Hart?Celler Act first started to allow hundreds of thousands of non-Europ
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Question
1. The Hart?Celler Act first started to allow hundreds of thousands of non-Europeans to legally migrate to America.
Select one:
a. True.
b. False.
2. The so called "California Dream Act" or AB 131 signed by Governor Brown in October 2011. This law:
Select one:
a. would now allow all illegal students to borrow money at lower interest rates.
b. would, for the first time, make certain undocumented people (who came the US as minors, and who graduated from high schools in California) eligible for in-state tuition for certain state-supported colleges and universities such as Cal State Fullerton.
c. would make it legal to disclose contents of our dreams from lab experiments.
d. None of the above.
Consider Roy's model of immigration. As the destination country's skill earnings profile shifts from line A to line B:
Select one:
a. People with lowest skills now move from the destination country to the source country.
b. People with mid-level skills are now encouraged to move from the source country to the destination country.
c. immigration surplus falls in the destination country.
d. Roy's result does not hold.
4. The Borjas-Card disagreements about US immigration can be summarized by saying that:
Select one:
a. Borjas thinks that Cuban immigration has created immigration surplus, but Canadian immigration has not.
b. Borjas is more focused on short run effects, while Card is more focused on long run effects.
c. Borjas would like to ban all immigration temporarily, while Card favors stronger border security.
d. Borjas believes in factor price equalization, while Card believes in the Krugman model.
5. Critics of U.S. trade and immigration policy maintain that
Select one:
a. It has depressed wages for many Americans
b. It has increased the supply of less educated workers in the United States
c. It has an adverse impact on the employment opportunities of less-skilled, American workers
d. All of the above
Figure 2 represents the U.S. labor market where the horizontal axis is in millions. Assume that labor and capital are the only factors of production. Also assume the initial supply schedule of labor is denoted by S0 and consists entirely of native U.S. workers. The demand schedule of labor is denoted by D0.
Consider Figure 2. As the result of the Mexican migration to the United States which shifts the supply labor curve to S1, the US immigration surplus equals:
Select one:
a. $45 million
b. $1.5 million
c. $10 million
d. None of the above.
7. Consider the previous question. After immigration takes place, income of the host country capitalists (employers) changes by (in $):
Select one:
a. +0.5 million
b. + 7.5 million.
c. -1.5 million.
d. +3 million.
8. Socialist governments usually do not allow their citizens to leave their countries freely. But Fidel Castro of socialist Cuba, did something very unusual. He declared that anyone from Mariel Port in Cuba could leave the country if they so wished - provided they were picked up by a legitimate ship or boat from another country.
The Cuban exiles in Florida immediately sent boats to pick up the Cubans willing to leave Cuba. Approximately 125 thousand Cubans showed up in Miami that year. Economist David Card uses this example to argue that as a result of the migration,
Select one:
a. Wages of skilled workers went up in Florida.
b. food prices went up in Florida.
c. wages of unskilled workers in Miami eventually fell - possibly because increase in immigrant labor supply was accompanied by a decrease in labor demand as well.
d. wages of unskilled workers in Miami eventually did not fall - possibly because increase in immigrant labor supply was accompanied by an increase in labor demand as well.
9. The US Immigration Reform and Control Act of 1986
Select one:
a. made it illegal for employers to knowingly hire/recruit undocumented immigrants.
b. provided amnesty to illegal immigrants who came to the United States before 1982 (and lived in the US continuously).
c. essentially encouraged undocumented immigrants to obtain fake green cards.
d. All of the above.
10. A free immigration policy will not benefit the high wage country (the country of destination) as a whole if the immigrants from the low wage country (the source country) send back home (to the source country) all their income that they earn in the high wage country (i.e., all income earned in the country of destination).
Select one:
True
False
11. A country has a labor demand curve: W = 100 - 2L where W is the real wage and L is the employment of labor. Labor supply is fixed at 5. Assume that employers get to keep all revenue after thay have paid off their labor. Assuming that national income = employers' income + labor income, national income for this country is:
Select one:
a. 450
b. 3920
c. 475
d. None of the above.
12. A country has a labor demand curve: W = 100 - 2L where W is the real wage and L is the employment of labor. Labor supply is initially fixed at 5. Assume that employers get to keep all revenue after they have paid off their labor.
Now suppose that labor supply increases from 5 to 10 due to immigration, how much do the employers gain or lose from immigration?
Select one:
a. Employers gain by 20
b. Employers gain by 80.
c. Employers gain by 10.
d. Employers gain by 40
e. None of the above.
13. In Period zero, a country has a labor demand curve: W = 100 - 2L where W is the real wage and L is the employment of labor. In Period zero, Labor supply is fixed at 5. Assume that employers get to keep all revenue after they have paid off their workers (labor). Now suppose in Period 1, the labor supply increases from 5 to 10. In Period 2, because employers acquire more capital, labor productivity (marginal product of labor) rises which shifts the labor demand curve to W = 120 – 2L. Compared to Period zero, In Period 2:
Select one:
a. Native workers (original workers before immigration) are worse off, employers are better off.
b. Native workers (original workers before immigration) are better off, employers are better off.
c. Native workers (original workers before immigration) are better off, employers are worse off
d. .Native workers (original workers before immigration) are worse off, employers are worse off.
14. The labor market situation in two countries – Country A and Country B are described by the graph below.
In Country A, the Labor demand curve (also known as value of marginal product of labor curve - VMPLA) is drawn as a downward sloping line with the origin of the graph at OA. Labor is measured on the horizontal axis and WA is the wage rate in Country A.
In Country B, the Labor demand curve (value of marginal product of labor curve - VMPLB) is drawn as a downward sloping line with the origin of the graph at OB. Labor is measured on the horizontal axis and WB is the wage rate in Country A. Read Country B’s labor values from OB. On the horizontal axis values increase as one moves leftward from OB.
Initially, the labor supply in Country A is given by OA L0. The labor supply in Country B is given by OB L0. Total labor supply in the two countries together is thus given by OA OB.
As labor migrates from Country B to Country A, (because wages are higher in Country A, the line indicating labor supply in both countries moves from L0 to L1showing that L0L1 workers migrated from Country B to Country A. In this diagram:
a. The deadweight loss due to immigration is given by EFG.
b. The deadweight loss due to immigration is given by GFJ.
c. The deadweight loss due to immigration is given by EJG.
d. None of the above.
Dollars Source Country SkillsExplanation / Answer
1) TRUE
2) would, for the first time, make certain undocumented people (who came the US as minors, and who graduated from high schools in California) eligible for in-state tuition for certain state-supported colleges and universities such as Cal State Fullerton.
3) People with mid-level skills are now encouraged to move from the source country to the destination country.
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