Question

1. Suppose that you own a construction company in California. What is the best reason for you, as a business leader, to support illegal immigration from Mexico?

(A) It is simply a good thing to do, as a concerned citizen of the world.

(B) You enjoy authentic Mexican cuisine.

(C) California has a lot of native Spanish speakers, and hiring illegal immigrants allows you to expand your clientele.

(D) Low-skilled immigration causes wages in the construction sector to go down.

2. The American Medical Association restricts the supply of American doctors by limiting the number of medical licenses it provides. What impact does this have on the market for doctors?

(A) The demand for licenses will increase.

(B) The supply of licenses will decrease.

(C) Doctors’ salaries will go down.

(D) Doctors’ salaries will go up.

Answer 1

1.Low skilled immigration causes cost of production to fall down because they are usually willing to work at lower wages.

Answer-D

2.The supply of doctors fall due to reduction in the number of licence given.As a result the supply curve of doctors shift to the right, increasing their salaries.

Answer-D