Chapter 11
The Economics of Immigration
Multiple Choice Questions
1. The two primary “levers” that immigration policymakers can manipulate are:
A. the number of immigrants that are admitted and the conditions they have to meet for admissibility.
B. the fees that are charged to applicants and the number of immigrants that are admitted.
C. the fees that are charged to applicants and the conditions they have to meet for eligibility.
D. the number of immigrants that are admitted and the number of applications that are evaluated.
E. the number of individuals file applications and the conditions they have to meet for admissibility
Blooms: Remember
Difficulty: Medium
Learning Objective: 11-02 Describe Canada’s immigrant point system, and the role it plays in determining the admission of immigrants to Canada.
Topic: 11-02 The Policy Environment
2. All of the following are motivations for immigration, except:
A. humanitarian concerns relating to the applicant.
B. admission of specific labour market skills that immigrants might have.
C. family reunification.
D. population growth
E. attracting international investors
Blooms: Understand
Difficulty: Easy
Learning Objective: 11-02 Describe Canada’s immigrant point system, and the role it plays in determining the admission of immigrants to Canada.
Topic: 11-02 The Policy Environment
3. Assessed classes of immigrants are those who are:
A. evaluated on the basis of their likely contribution and success in the labour market.
B. given a grant in order to start a new life in Canada.
C. evaluated on the basis of their net worth prior to being admitted into Canada.
D. evaluated on the gravity of their human rights situation.
E. evaluated on the basis of their financial background.
Blooms: Remember
Difficulty: Easy
Learning Objective: 11-02 Describe Canada’s immigrant point system, and the role it plays in determining the admission of immigrants to Canada.
Topic: 11-02 The Policy Environment
4. The point system is one in which points are awarded for:
A. the salary range that the person was earning before he/she came to Canada.
B. the number of children in the family of the applicant.
C. a set of skills and attributes that the individual has.
D. the type of immigrant class under which his/her application falls.
E. the humanitarian concerns related to the applicant.
Blooms: Remember
Difficulty: Easy
Learning Objective: 11-02 Describe Canada’s immigrant point system, and the role it plays in determining the admission of immigrants to Canada.
Topic: 11-02 The Policy Environment
5. The increase in labour supply that accompanies immigrant inflows may have no adverse effect on wages because of all of the following, except that:
A. The supply of lower-skilled labour may become more abundant.
B. Immigration typically causes an increase in labour demand as immigrants purchase goods and services.
C. Immigration activity improves ties with the source country, which can increase demand in the labour market.
D. Importing labour in the form of immigration can serve as a substitute for importing goods produced in their source country.
E. Immigrants may relieve the labour market shortage without any adverse effect on wages or unemployment.
Blooms: Analyze
Difficulty: Medium
Learning Objective: 11-03 Use the supply and demand framework to evaluate the theoretical impact of immigration on the labour market, and use this model to discuss the empirical evidence of the impact of immigration.
Topic: 11-03 The Impact of Immigrants on the Labour Market
6. Which of the following refer to the labour market conditions that would prevail in the absence of any immigration activity?
A. The cohort entry effect
B. The assimilation effect
C. The family investment hypothesis
D. The counterfactual case
E. The age effect
Blooms: Remember
Difficulty: Easy
Learning Objective: 11-03 Use the supply and demand framework to evaluate the theoretical impact of immigration on the labour market, and use this model to discuss the empirical evidence of the impact of immigration.
Topic: 11-03 The Impact of Immigrants on the Labour Market
7. If immigrants are positively selected, it means that:
A. They are chosen deliberately by the Canadian government and asked to apply.
B. Their wage levels exceeds those of their native counterparts.
C. Those individuals who are highly motivated and able are more likely to apply to immigrate to Canada.
D. They have received a high number of points in the assessment process.
E. The applicant is ready to start a new life in Canada.
Blooms: Remember
Difficulty: Medium
Learning Objective: 11-04 Define the concept of “immigrant earnings assimilation,” and explain the pitfalls of using a single cross-section data set to estimate the rate of assimilation.
Topic: 11-04 Economic Assimilation
8. The entry effect refers to:
A. the number of immigrants that end up returning to their home country
B. the earnings penalty that new immigrants might experience compared to their native counterparts
C. the number of Canadians who experience job loss because of an inflow of immigrants
D. the degree to which immigrants’ earnings catch up over time to the earnings levels of their native counterparts
E. the brain drain
Blooms: Remember
Difficulty: Medium
Learning Objective: 11-04 Define the concept of “immigrant earnings assimilation,” and explain the pitfalls of using a single cross-section data set to estimate the rate of assimilation.
Topic: 11-04 Economic Assimilation
9. Recent studies on economic assimilation for Canadian immigrants have found all of the following, EXCEPT that:
A. The entry effect is diminishing over time as the recent immigrants had higher levels of skills than the earlier immigrants.
B. The return to a year of education is much lower for immigrants educated outside Canada.
C. The return to years of experience is much lower for immigrants educated outside Canada.
D. “Age at immigration” matters.
E. The assimilation rates are uniformly too low for the average earnings of any cohort of immigrants to catch up with the comparable native born.
Blooms: Apply
Difficulty: Medium
Learning Objective: 11-04 Define the concept of “immigrant earnings assimilation,” and explain the pitfalls of using a single cross-section data set to estimate the rate of assimilation.
Topic: 11-04 Economic Assimilation
10. The “brain drain” phenomenon refers to:
A. Workers experiencing a fall in productivity levels due to a lack of up-to-date training.
B. The event of less-developed countries losing their best and brightest workers through immigration to more developed ones.
C. The event of highly skilled, white-collar workers withdrawing from the labour force.
D. The underemployment of highly skilled immigrants in occupations that do not make a good use of their skills.
E. A disease in which the victim’s brain shrinks.
Blooms: Understand
Difficulty: Medium
Learning Objective: 11-05 Sketch a simple economic model of migration, including an answer to the question, when should someone move countries?
Topic: 11-07 The Brain Drain and Canada
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