Question

State whether each of the following events will result in a movement along the market supply curve of agricultural labor in the United States or whether it will cause the market supply curve of labor to shift. If the supply curve shifts, indicate whether it will shift to the left or to the right. A decline in the agricultural wage rate will result in a movement along the labor supply curve. A decrease in wages outside of agriculture will O A. shift the labor supply curve to the left. B. shift the labor supply curve to the right. OC. result in an upward movement along the labor supply curve. OD. result in a downward movement along the labor supply curve. Unlimited immigration into the U.S. will O A. shift the labor supply curve to the left. O B. result in an upward movement along the labor supply curve. O C. shift the labor supply curve to the right. OD. result in a downward movement along the labor supply curve.

Answer 1

UNlimited immigration into the US will shift the labor supply curve to the right and the new equilibrium will be at a lower wage and higher quantity in the market.

The answer is "C".