How would each of the following factors be likely to affect the economy-wide supply of labor? ** A. The relaxation of immigration law that causes an influx of immigrants into the U.S. B.The age at which people are eligible for Medicare is decreased. C.Social Security benefits are made less generous. D.War preparations lead to the institution of a national draft, and many young people are called up.

How would each of the following factors be likely to affect the economy-wide supply of labor? ** A. The relaxation of immigration law that causes an influx of immigrants into the U.S. B.The age at which people are eligible for Medicare is decreased. C.Social Security benefits are made less generous. D.War preparations lead to the institution of a national draft, and many young people are called up.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider a perfectly competitive labour market that is initially in equilibrium. The country within which this labour market is located has not previously accepted immigrants, but is now considering whether or not to change this policy and start accepting immigrants. One of the key ideas being considered is the impact that immigrants will have on the equilibrium wage earned by local workers in the aforementioned labour market. The country's Prime Minister has asked you to provide them with advice on the matter. a) First, the Prime Minister would like to better understand the reasons why the introduction of immigrants into their country might result in a lower equilibrium wage in the aforementioned perfectly competitive labour market. Describe the general logic as to how the introduction of immigrants into a perfectly competitive labour market might result in a lower equilibrium wage. b) Next, the Prime Minister would like to better understand the reasons why the introduction of…
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21. How does increased immigration affect the labor market? How would the equilibrium wage and the equilibrium quantity of labor be affected?
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