Question

Figure 1: A Producer Tax 7. The American Federation of Labor (AFL) is a collection of Labour unions that was formed in 1886 to protect the interest of timinal workers. In the 19th Century, the AFL opposed tootegration. From an economic perspective, why? (A) Immigrants do not bring shared cultural values. (B) Immigrants overwhelminudy vote Republican (C) Immigrants can be the productivity of AFL workers. ID) T ante V s with AFI. wurkers must ways to crop. The next 3 questions involve the above diagram, which depicts a producer tax of $3 per unit. M. What arvien of the s o nument (B; 2 Ds: So ist es

Answer 1

7. D) Immigrants compete for jobs with AFL workers causing wages to drop.

Initially the migration of workers will not harm the economy of the country to which the workers are migrating. They will fill the existing gap between the demand and supply of workers. But in the long run the supply of workers exceeds the demand. This will pull down the wages.

8. A) $1

From the given figure we can see that the producer bears the burden of $2 units of tax ( 10 _ 8). The rest $1 unit of burden is borne by the consumers