ECN 306 EXAM QUESTIONS AND
ANSWERS 100% PASS 2026/2027
As a result of migration, workers in the host country _________ and workers in the source
country ___________. - ANS win; win
Correct! lose; win
win; lose
lose; lose
As workers migrate from low-wage Mexico to high-wage United States, wages tend to rise in
Mexico and fall in the UnitedStates. - ANS Correct! True
False
Immigration creates a net cost on the government in terms of taxes vs. government spending on
public services. - ANS True
Correct! False
____ refers to highly educated and skilled people who migrate from poor developing countries
to wealthy industrial countries. - ANS Direct investment
Portfolio investment
Transfer pricing
2026/2027 ALLRIGHTS RESERVED 1
,Correct! Brain drain
Developing countries have sometimes feared open immigration policies of developed countries
on the grounds that highly educated and skilled people may immigrate to the developed
countries, thus limiting the growth potential of the developing countries. - ANS Correct! True
False
Policies that permit Mexican workers to freely migrate to the United States would likely be
resisted by - ANS U.S. capital owners.
Correct! native U.S. workers.
U.S. capital owners and native U.S. workers.
neither U.S. capital owners nor native U.S. workers.
Immigration tends to reduce the incomes of all factors of production. - ANS True
Correct! False
Unauthorized immigrants do not pay taxes in the US because they do not have social security
numbers. - ANS True
Correct! False
In lesser developed countries, highly skilled workers tend to emigrate to more developed
countries for better economic opportunities. This is called: - ANS Correct! Brain Drain
Reverse Migration Effect
Remittances
Human Capital Dilemma
2026/2027 ALLRIGHTS RESERVED 2
, Who tends to benefit from increased immigration? - ANS Correct!
owners of capital in the home country
labor in the home country
both owners of capital and labor in the home country
neither owners of capital nor labor in the home country
The United States has discouraged the "brain drain" problem by permitting the immigration of
unskilled workers while restricting the immigration of skilled persons. - ANS True
Correct! False
The effect of workers migrating from low-wage Mexico to high-wage United States is to
redistribute income from capital to labor in the United States and from labor to capital in
Mexico. - ANS True
Correct! False
Labor migration tends to increase output and decrease wages in the country of immigration
while decreasing output and increasing wages in the country of emigration. - ANS Correct!
True
False
Almost one-third of the current foreign-born population in Canada is undocumented, compared
to 6 percent in the United States. - ANS True
Correct! False
World GDP decreases as a result of international migration. - ANS True
Correct! False
2026/2027 ALLRIGHTS RESERVED 3
ANSWERS 100% PASS 2026/2027
As a result of migration, workers in the host country _________ and workers in the source
country ___________. - ANS win; win
Correct! lose; win
win; lose
lose; lose
As workers migrate from low-wage Mexico to high-wage United States, wages tend to rise in
Mexico and fall in the UnitedStates. - ANS Correct! True
False
Immigration creates a net cost on the government in terms of taxes vs. government spending on
public services. - ANS True
Correct! False
____ refers to highly educated and skilled people who migrate from poor developing countries
to wealthy industrial countries. - ANS Direct investment
Portfolio investment
Transfer pricing
2026/2027 ALLRIGHTS RESERVED 1
,Correct! Brain drain
Developing countries have sometimes feared open immigration policies of developed countries
on the grounds that highly educated and skilled people may immigrate to the developed
countries, thus limiting the growth potential of the developing countries. - ANS Correct! True
False
Policies that permit Mexican workers to freely migrate to the United States would likely be
resisted by - ANS U.S. capital owners.
Correct! native U.S. workers.
U.S. capital owners and native U.S. workers.
neither U.S. capital owners nor native U.S. workers.
Immigration tends to reduce the incomes of all factors of production. - ANS True
Correct! False
Unauthorized immigrants do not pay taxes in the US because they do not have social security
numbers. - ANS True
Correct! False
In lesser developed countries, highly skilled workers tend to emigrate to more developed
countries for better economic opportunities. This is called: - ANS Correct! Brain Drain
Reverse Migration Effect
Remittances
Human Capital Dilemma
2026/2027 ALLRIGHTS RESERVED 2
, Who tends to benefit from increased immigration? - ANS Correct!
owners of capital in the home country
labor in the home country
both owners of capital and labor in the home country
neither owners of capital nor labor in the home country
The United States has discouraged the "brain drain" problem by permitting the immigration of
unskilled workers while restricting the immigration of skilled persons. - ANS True
Correct! False
The effect of workers migrating from low-wage Mexico to high-wage United States is to
redistribute income from capital to labor in the United States and from labor to capital in
Mexico. - ANS True
Correct! False
Labor migration tends to increase output and decrease wages in the country of immigration
while decreasing output and increasing wages in the country of emigration. - ANS Correct!
True
False
Almost one-third of the current foreign-born population in Canada is undocumented, compared
to 6 percent in the United States. - ANS True
Correct! False
World GDP decreases as a result of international migration. - ANS True
Correct! False
2026/2027 ALLRIGHTS RESERVED 3
