Immigration And The Test Questions & Answers Ch.12 1e

c12; Chapter 12: Immigration and the International Trade of Labor

Learning Objectives:

1. Describe the extent of international migration
2. Assess the costs and benefits of migration for migrant
3. Assess the costs and benefits of migration for host and home countries
4. Define and describe the extent of outsourcing and offshoring

Multiple Choice

1. Someone moving, or migrating, to another country is a(n)
   1. emigrant.
   2. immigrant.
   3. resident.
   4. citizen.

LO-1

Level: Easy

1. Someone who has moved, or migrated, out of their own country is a(n)
   1. emigrant.
   2. immigrant.
   3. resident.
   4. citizen.

LO-1

Level: Easy

1. Emma migrates from her home country of England to France. In England, she is considered a(n)
   1. emigrant.
   2. immigrant.
   3. resident.
   4. citizen.

LO-1

Level: Easy

1. Emma migrates from her home country of England to France. In France, she is considered a(n)
   1. emigrant.
   2. immigrant.
   3. resident.
   4. citizen.

LO-1

Level: Easy

1. In 2010 this percent of the world’s population were immigrants.
   1. 3
   2. 13
   3. 5
   4. 15

LO-1

Level: Easy

1. An immigrant is ___________________ a country.
   1. entering
   2. leaving
   3. applying for citizenship to
   4. requesting asylum in

LO-1

Level: Easy

1. An emigrant is ____________________ a country.
   1. entering
   2. leaving
   3. applying for citizenship to
   4. requesting asylum in

LO-1

Level: Easy

1. Economists assume that decisions to migrate are based on
   1. costs and benefits.
   2. exchange rates.
   3. population trends.
   4. political reasons.

LO-2

Level: Moderate

1. An increased immigration in a host country is experienced during periods of
   1. economic expansion.
   2. economic contractions.
   3. short run cuts.
   4. recession.

LO-2

Level: Easy

1. The decision to migrate would imply that
   1. less utility is expected in the host country than in the home country.
   2. less utility is expected in the home country than in the host country.
   3. more utility is expected in the host country than in the home country.
   4. more utility is expected in the home country than in the host country.

LO-2

Level: Moderate

1. Costs of migrating include(s)
   1. monetary costs.
   2. monetary and nonmonetary costs.
   3. nonmonetary costs only.
   4. intrinsic costs only.

LO-2

Level: Easy

1. Costs of the migrating includes all of the following except
   1. the cost of moving belongings.
   2. the distance from friends and family.
   3. negative differences in earnings.
   4. positive differences in earnings.

LO-2

Level: Easy

1. Today, approximately 60 percent of the world’s migrants reside in the ___________ regions of the world
   1. more developed
   2. less developed
   3. developing
   4. concentrated

LO-2

Level: Easy

1. The United States is home to approximately
   1. 10 percent of the world’s migrants.
   2. 15 percent of the world’s migrants.
   3. 20 percent of the world’s migrants.
   4. 60 percent of the world’s migrant.

LO-2

Level: Easy

1. When a home country has increased output and job opportunities
   1. fewer people emigrate.
   2. fewer people immigrate.
   3. more people emigrate.
   4. more people immigrate.

LO-2

Level: Moderate

1. Ceteris paribus, research have found that immigrants are more likely to move to countries
   1. close to their home country.
   2. far from their home country.
   3. that are similar in size and culture.
   4. that have similar economic situations.

LO-2

Level: Easy

1. The largest proportion of migrants to the U.S. comes from
   1. China.
   2. South America.
   3. Caribbean.
   4. Mexico.

LO-2

Level: Easy

1. Which of the following case best describes a migration possibility?
   1. Emma, a 64-year-old grandmother from England migrates to the United States to travel the country.
   2. Jacob, a 32-year-old research economist in his home country, migrates to Australia to accept a position twice his current salary.
   3. Ashtyn, a 46-year-old mother of three with limited income, migrates to look for a better job.
   4. Michael, a 52-year-old auto mechanic who did not complete high school, migrates half way around the world to discover something new.

LO-2

Level: Difficult

1. The majority of immigrants in the world are
   1. between 19 – 24 years old.
   2. younger than 24 years old.
   3. younger than 35 years old.
   4. older than 35 years old.

LO-2

Level: Easy

Reference: Use the graphs below to answer questions 20-21.

1. Which illustrates the impact of immigration on substitute labor for a host country?
   1. A
   2. B

LO-3

Level: Easy

1. Which illustrates the impact of immigration on complement labor for a host country?
   1. A
   2. B

LO-3

Level: Easy

1. For the host country labor market, immigration causes a(n)
   1. increase in demand.
   2. decrease in demand.
   3. increase in supply.
   4. decrease in supply.

LO-3

Level: Moderate

1. An increase in __________________ is caused by immigration in the host country.
   1. supply
   2. quantity supplied
   3. demand
   4. quantity demanded

LO-3

Level: Moderate

1. Impacts of immigration on host countries can be measured by
   1. the consumer surplus.
   2. the producer surplus.
   3. both consumer and producer surplus.
   4. the deadweight loss.

LO-3

Level: Easy

1. The impact of immigration for native workers will depend on the relationship of
   1. the skills of native workers to immigrant labor.
   2. the education of native workers to immigrant labor.
   3. the ages of native workers to immigrant labor.
   4. the culture of native workers to immigrant labor.

LO-3

Level: Moderate

1. When immigrants are relatively low-skilled, they are considered ________________ for other low-skilled native workers. If immigrants have high skill levels, they are ___________ for highly-skilled native workers.
   1. complement; complement
   2. substitute; substitute
   3. complement; substitute
   4. substitute; complement

LO-3

Level: Moderate

1. Immigration can cause a(n) ___________________ in the _______________ of labor in markets where immigrants and native workers are _________________.
   1. increase; demand; substitutes
   2. decrease; supply; complements
   3. increase; supply; substitutes
   4. decrease; demand; complements

LO-3

Level: Moderate

Reference: Use the graph to answer questions 28-29.

1. This model illustrates the impact of __________________ on host country labor markets.
   1. complements
   2. substitutes
   3. positive externalities
   4. inferior goods

LO-3

Level: Moderate

1. Which of the following statements is true?
   1. The increase in producer surplus implies that workers are made better off as a result of immigration.
   2. The decrease in producer surplus implies that workers are worse off as a result of immigration.
   3. The increase in consumer surplus implies that workers are made better off as a result of immigration
   4. The decrease in consumer surplus implies that workers are made better off as a result of immigration.

LO-3

Level: Difficulty

1. In labor markets, native workers who are ________________ to immigrant workers have productivity and income gains from immigration.
   1. complements
   2. substitutes
   3. inferior goods
   4. negative externalities

LO-3

Level: Easy

1. Workers who are complements to immigrants ____________ from immigration because their wages and employment levels ____________.
   1. lose; fall
   2. lose; rise
   3. gain; fall
   4. gain; rise

LO-3

Level: Moderate

1. This is used by economists as a rough measure of a worker’s skill level.
   1. Occupational training
   2. Previous experience
   3. Education
   4. Age

LO-3

Level: Easy

1. Emigration causes a decrease in
   1. the quantity supplied of labor in the home country.
   2. supply of labor in the home country.
   3. the quantity demanded of labor in the home country.
   4. the demand of labor in the home country.

LO-4

Level: Easy

1. When workers emigrate from the home country
   1. firms in the host country lose.
   2. firms in the home country lose.
   3. workers in the host country lose.
   4. workers in the home country lose.

LO-4

Level: Moderate

1. Hiring a person from another person or firm to produce a good or service is
   1. outsourcing.
   2. offshoring.
   3. collective bargaining.
   4. trading.

LO-4

Level: Easy

1. Widgets Inc, an international corporation, is moving its company production from the England to the United States. This is known as
   1. outsourcing.
   2. offshoring.
   3. collective bargaining.
   4. trading.

LO-4

Level: Easy

1. Losers from outsourcing and offshoring are
   1. workers.
   2. firms.
   3. economies.
   4. both workers and firms.

LO-4

Level: Moderate

1. Which of the following statements is true?
   1. When firms outsource jobs to other locations, costs of production fall and the supply of the product increases. The price of the product falls and the quantity demanded increases. Because of this both firms and consumers benefit from the impact of outsourcing on home country product markets.
   2. When firms outsource jobs to other locations, costs of production increases and the supply of the product decreases. The price of the product increases and the quantity demanded decreases. Because of this, both firms and consumers lose from the impact of outsourcing on home country product markets.
   3. When firms outsource jobs to other locations, costs of production increases and the demand of the product decreases. The price of the product decreases and the quantity demanded decreases. Because of this, both firms and consumers lose from the impact of outsourcing on home country product markets.
   4. When firms outsource jobs to other locations, costs of production fall and the supply of the product decreases. The price of the product increases and the quantity demanded decreases. Because of this, both firms and consumers lose from the impact of outsourcing on home country product markets.

LO-4

Level: Difficult

1. A remittance is
   1. when capital equipment is sent to other countries for economic development.
   2. financial payments sent back to families of immigrants.
   3. when migrants return home.
   4. the difference in national income due to immigration.

LO-4

Level: Easy

Essay

1. Explain the four predictions about immigration.

LO-2

Level: Moderate