Why would illegal immigration have an effect on the prices of goods and services produced by illegal workers? Who benefits from these lower product and service prices?
What will be an ideal response?
Illegal immigrants tend to be paid lower wages than otherwise comparable domestic-born workers. These lower wages translate into lower costs of production and allow producers to increase the supply of goods and services. The increase in supply of these goods and services reduces the equilibrium prices paid by consumers, increases the amount of consumer surplus and raises the standards of living of all Americans and their families.
You might also like to view...
If the reserve ratio is 10 percent, the money multiplier is equal to 10
Indicate whether the statement is true or false
Refer to Figure 13-17. Suppose the firm is currently producing Qf units. What happens if it increases its output to Qg units?
A) It will move from a zero profit situation to a loss situation B) Its average cost of production will fall and its profit will rise. C) It will move from a zero profit situation to a profit situation D) It will be taking advantage of economies of scale and will be able to lower the price of its product.