Question

​Outsourcing, immigration, and the gains of the​ super-rich are the most common reasons for the income inequality in America. Tyler Cowen​ disagrees: The problem is largely the lack of education. To​ date, outsourcing is not yet common enough to have much effect. Immigration​ doesn't account for much of the change in the wages paid to unskilled workers since 1950. Advances in technology raises the incomes of highly skilled workers. Inequality will be reduced if more people undertake education.

Immigrants to the United States include unskilled workers from Mexico and skilled workers from countries such as India and China. How would each of these types of immigrants influence the personal distribution of​ income?

Unskilled immigrant workers​ ______ and skilled immigrant workers​ ______.

A.

have no effect on the personal distribution of​ income;

have no effect on the personal distribution of income

B.

increase the percentage of total income earned by the poorest 20​ percent;

decrease the percentage of total income earned by the richest 20 percent

C.

decrease the percentage of total income earned by the richest 20​ percent;

increase the percentage of total income earned by the poorest 20 percent

D.

decrease the percentage of total income earned by the poorest 20​ percent;

increase the percentage of total income earned by the richest 20 percent

Answer 1

Correct Answer:

B

Immigrant high skilled workers will help reduce the inequality, though unskilled immigrant workers will not bring much change, but will help increase the income of lowest 20%.