Asked by kylah perry on May 01, 2024

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A nation can maximize the net benefits from immigration by

A) contracting immigration until the extra welfare cost for taxpayers is zero.
B) expanding immigration until its marginal benefits equal its marginal costs.
C) expanding immigration, because it benefits society with a greater supply of products and increased demand for them.
D) contracting immigration, because the benefits are minor and it reduces the wage rates of domestic workers.

Marginal Benefits

The additional benefits received from consuming one more unit of a good or service.

Marginal Costs

The increase or decrease in the total cost that arises when the quantity produced is incremented by one unit.

  • Identify optimal strategies for managing the net benefits of immigration from an economic perspective.
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ZK
Zybrea KnightMay 04, 2024
Final Answer :
B
Explanation :
Expanding immigration until its marginal benefits equal its marginal costs is the most efficient economic strategy. This principle ensures that the benefits derived from immigration, such as increased labor supply and potential for innovation, are maximized up to the point where they are balanced by the costs, such as potential strain on public services or infrastructure. This approach aims to achieve the optimal level of immigration where the net benefits to the nation are maximized.