In the short run, which of the following will reduce the gains from labor migration to the recipient nation?
a. Workers remit less than the value of their marginal products.
b. Migrant workers have a declining marginal product so that the equilibrium wage is lower than MPs of earlier immigrants.
c. Immigrants are low cost in terms of adjustment costs such as crime prevention, language assimilation, and few children enrolled in school.
d. Workers remit more than the value of their marginal products.
Ans: d. Workers remit more than the value of their marginal products.
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Which of the following would indicate that an income tax is progressive?
a. high-income people pay $3,000 . low-income people pay $1,000 b. low-income people pay $3,000 . high-income people pay $1,000 c. high-income and low-income people all pay $1000 each d. high-income people pay 20 percent of their income in taxes; low-income people pay 10 percent e. both high-income and low-income people pay 10 percent of their income in taxes
Under the Bretton Woods system, a country with a balance of payments deficit
a. could get loans from the U.S. government. b. could devalue if deflationary policies failed to eliminate the deficit. c. was not allowed to devalue under any circumstance. d. was required to devalue its currency immediately.