In PPP terms, GDP per capita in Country A is 3 times higher than in dollar terms. This means that if a US firm employs workers in Country A at $5 per hour, this would give the the workers in Country A a purchasing power equivalent to a wage of $15 per hour in the USA. Select one: O True O False
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- A firm can use three different production technologies, with capital and labour requirements at each level of output as follows:Daily OutputTechnology 1 Technology 2 Technology 3K L K L K L100 3 7 4 5 5 4150 3 10 4 7 5 5200 4 11 5 8 6 6250 5 13 6 10 7 8a) Suppose the firm is operating in a high-wage country, where capital cost is $100 per unit per day and labour cost is $80 per worker per day. For each level of output, which technology is the cheapest?b) Now suppose the firm is operating in a low-wage country, where capital cost is $100 per unit per day and labour cost is $40 per worker per day. For each level of output, which technology is the cheapest?c) Suppose the firm moves from a high-wage to a low-wage country but that its level of output remains constant at 200 units per day. How will its total employment change?Increases in the amount of human capital in theeconomy tend to _________ real incomes becausethey increase the _________ of labor.a. increase; bargaining powerb. increase; productivityc. decrease; bargaining powerd. decrease; productivityHow do companies usually set their wage rates when they commence operations in foreign countries? a. as low as they can, given the local unemployment rates b. at, or slightly below, the prevailing wage for local companies c. at the average of the prevailing wage rates for local companies d. at, or slightly higher than, the prevailing wage for local companies The textile workers at a local company have had a stressful weekend. Their union has been engaged in contract negotiations for the past 72 hours. When those on the 6 a.m. shift arrive at the factory the doors are chained and they cannot get in. What is this situation called? a. slowdown b. deadlock c. walk-out d. lock-out
- Textile and clothing production is labor intensive, which means that… a. it tends to have higher labor productivity than capital intensive industries. b. it requires a large number of labor hours in proportion to other inputs. c. it relies on large capital investments. d. All of the above. e. it is concentrated in high-wage countries. PreviousNextGiven: Y = 20(L.5K.4N.1) L is labor K is capital N is land L = 100 K = 100 N = 100. What is the level of output in this country?P F Q1 Suppose that the wage ratio of skilled labor v.s. unskilled labor, wH/wL, is lower at home than at the foreign country and that production involves four stages/tasks, namely, R&D, marketing, components, and assembly ordered from the most skill intensive to the least skill intensive. Now consider a decrease in trade costs for shipping components and final goods between the two countries. Use a relative skilled-labor demand- and supply-curve graph to show the effect of lower trade costs on home country’s wH/w Use another relative skilled-labor demand- and supply-curve graph to show the effect of lower trade costs on foreign country’s wH/w Your answer:
- Suppose in a particular labor market, the demand for labor is given by the equation LD = 180 – 3W and that the labor supply in this market for native-born citizens is given by LN = 3W, while the supply curve of immigrants in this market is given by LI = 2W, where L represents the number of workers, W is the wage expressed in real terms. Finally, suppose the production function can be represented by ?=100√L a. Assuming immigration is entirely prohibited, what are the equilibrium wage and employment level in this market? b. What would be the equilibrium wage and employment level in this market if immigration were completed legalized? c. How many jobs do natives lose as a result of this immigration? How much aggregate income is lost? d. Assuming the costs of capital in this market are zero, find the total profits to firms before and after immigration. What is the change in total profits? e. Compute the total output of this market before and after immigration. How much total output does…Migration of workforce is targeting the developing countries. Select one: O a. True O b. FalseSuppose a worker’s skill is captured by his efficiency units of labor. The distribution of efficiency units in the population is such that worker 1 has one efficiency unit, worker 2 has two efficiency units, and so on. There are 100 workers in the population. In deciding whether to migrate to the United States, these workers compare their weekly earnings at home ( w0) with their potential earnings in the United States (w1).The wage-skills relationship in each of the two countries is given byw0 = 700 + 0.5sandw1 = 670 + swhere s is the number of efficiency units the worker possesses.a. Assume there are no migration costs. What is the average number of efficiency units among immigrants? Is the immigrant flow positively or negatively selected?b. Suppose it costs $10 to migrate to the United States. What is the average number of efficiency units among immigrants? Is the immigrant flow positively or negatively selected?
- Consider a country with only two industries--Industry A and Industry B. Capital can be employed in either industry, and the value of the marginal product of capital differs in the two industries. Initially, there is no tax on the use of capital. The value of the marginal product of capital in Industry A is given by VMPA=1200-10KA, where KA is the quantity of capital employed in Industry A. The value of the marginal product of capital in Industry B is given by VMPB=800-5KB, where KB is the quantity of capital employed in Industry B. There is a total of 100 units of capital available in the country. Suppose the government decides to impose a $15 per unit on capital used in Industry B only. What will be the quantity of capital employed in Industry B? [NOTE: If necessary, please round to the nearest whole number.] units of capital in Industry B?the verizon publishing company pays its salespeople a weekly salary plus a 2% commission on all net sales over $5,000 (no commission on returned goods). complete the following: Employee: Rice Gross sales: $11,738 Return: $138 Net sales: ?? Given quota: $5,000 Commission sales: ?? Commission rate : 2% Total Commission: ?? Reagular wage: $250 Total wage: ??Considering YM = 40, 000 and YF = 28, 000, YM and YF are average earnings for males and females respectively. The following are estimated simple human capital earning functions: ln YM = 9.2 + 0.1SM, SM = 14; ln YF = 9.4 + 0.07SF; SF = 12; SM and SF are average school years for male and female respectively. a What is female and male wage ratio in logarithms? I know the correct is 0.36. Please shows the caculation