Question

1. Immigration shifts the national demand curve for labor to the

Multiple Choice

• right, because immigrants are consumers as well as workers.

• right, because immigrants compete with native workers for jobs.

• left, because immigrants are consumers as well as workers.

• left, because immigrants compete with native workers for jobs.

2. The long-term supply of labor

Multiple Choice

• depends on location, as some regions are more attractive to workers.

• does not depend on location as flows of workers between regions cancel each other out.

• can vary from region to region but does not change within a region.

• generally does not vary much from region to region.

3.

Suppose an income tax is imposed that takes $2,000 from someone with an income of $20,000, $2,500 from someone with an income of $30,000, and $4,000 from someone with an income of $80,000. This tax would be classified as

Multiple Choice

• progressive.

• proportional.

• a flat tax.

• regressive.

Answer 1

Ans.1- (A)

Immigration shifts the national demand curve for labor to the
right, because immigrants are consumers as well as workers.

Ans.2- (A)

Ans.3- (D)

This tax is regressive because a person with an income of 20000 is paying 10% tax whereas a person with an income of 80000 is paying just 5% tax.