In the long run, which of the following will occur if the U.S. federal government eliminates restrictions on migration of Mexican workers to the United States?

a. The United States' total K/L ratio will rise.
b. Mexico's total K/L ratio will fall.
c. Wages of American workers who compete with Mexican workers for jobs will rise.
d. The returns to U.S. owners of capital will remain unchanged.

Ans: d. The returns to U.S. owners of capital will remain unchanged.

Economics

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In the figure above, the cost of producing 10,000 pizzas a day is

A) $60,000. B) $100,000. C) $40,000. D) $80,000. E) $50,000.

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Which of the following evidence does NOT support the expected utility theory?

A) People assign disproportionately high weights to rare events. B) Risk-averse people do not engage in fair bets. C) Risk-loving people do not purchase insurance policies. D) Risk-neutral people engage in fair bets.

Economics