Multiple Choice
In the context of the Populist movement in the late 19th century United States, who did the Populists advocate should own and operate the railroads?
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0. Basic Principles of Economics
Introduction to Economics
Struggling with Microeconomics?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which characteristic of immigration can cause a general decrease in wages?
A
A decrease in the number of entrepreneurs
B
An increase in government spending on infrastructure
C
A rise in the demand for luxury goods
D
An increase in the supply of low-skilled labor
Verified step by step guidance1
Understand that wages are determined by the interaction of labor supply and labor demand in the labor market.
Recognize that an increase in the supply of labor, especially low-skilled labor, shifts the labor supply curve to the right.
Analyze how a rightward shift in labor supply, holding labor demand constant, tends to lower the equilibrium wage rate.
Consider that other factors like a decrease in entrepreneurs or increased government spending affect wages differently and are not directly related to labor supply shifts.
Conclude that an increase in the supply of low-skilled labor due to immigration can cause a general decrease in wages by increasing competition for jobs among workers.
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