131Economists conclude that the effect on our world’s standard of living as a result of labor and capital migration has been:
•positive overall as resources move to their highest-valued use.
•positive in some respects but very harmful in the long run to workers.
•so small worldwide that the effect is not worth measuring.
132Economist George Borjas has estimated the net benefits
(+)/costs (–) to the United States from labor immigration to be approximately:
•+10% of GDP.
•–5% of GDP.
•+0.1% of GDP.
•0.5% capital losses and 0.8% labor gains.
133Economists who have studied the impact of immigration on world welfare generally find after considering impacts on all constituencies that world GDP has _______ as a result of immigration of workers and FDI.
(Figure: Wages in Home and Foreign) Calculate the value gains to the home country if some of its workers are allowed to migrate to the foreign country.
(Figure: Wages in Home and Foreign) What potential costs might offset some of the gains determined above?
•higher living costs
•payments to agents to arrange migration (such as traffickers who arrange illegal migration or lawyers who arrange legal migration).
•All of the answers listed are potential costs of migration.
137According to economists, which of the following statements about international capital mobility is correct?
•International resource mobility has had no effect upon world GDP.
•International resource mobility has had a negative effect upon world GDP.
•International resource mobility has had a positive effect upon world GDP.
•International resource mobility has had such a small effect upon world GDP that it is not worth measuring.
138The mass migration to the United States in the nineteenth century caused wages to fall in the United States.
139Immigration of workers will always be harmful to the country receiving the workers.
140It is reasonable to assume that the amount of capital and land in a country is fixed in the short run.
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