In the specific-factors model, labor migration from Mexico to the United States will cause _________ in U.S. low-skilled wages and _________ in Mexican low-skilled wages. A) increases; decreases B) increases; increases C) decreases; decreases D) decreases; increases
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- Consider an overlapping generations model. Suppose population grows at a 2% rate, and wage grows at a 6% rate. Generation 2 has 500 people, who have an average salary of $30,000, and everyone pays 8% of their income to generation 1. What is the total amount generation 2 pays to generation 1? If generation 3 pays generation 2 the same dollar amount gen-eration 2 paid generation 1, what percentage of their income dothey pay?Why do some immigrants leave the destination country and go to a third country instead of returning to their origin country? (Use the utility- or income-maximization model and the gravity model to explain repeat migration.)If these population changes were only due to human migration, what conclusions could be made, based on the map? a) The majority of states are experiencing immigrationtherefore, the overall country has an increase in population size b) The majority of states are experiencing emigration therefore, the overall country has an increase in population size. c) The majority of states are experiencing immigration; therefore, the overall country has a decrease in population size d) The majority of states are experiencing emigration; therefore, the overall country has a decrease in population size
- 41. Decentralization of development requirespolicy changes, devolution of governmentfunctions and redistribution of revenue. *A. TRUEB. FALSE42. Correcting factor price distortions is afunction of the government. *A. TRUEB. FALSE43. Harris-Todaro Migration Model related thedemand and supply of workers specifically inthe manufacturing sector. *A. TRUEB. FALSE44. Migration decision of Filipinos is always aneconomic decision. *A. TRUEB. FALSE45. When wage differential is negligible, rural tourban migration will not be much of aproblem. *A. TRUEB. FALSE46. When a company serves slum areas, it willsurely have difficulty in achieving its economicand financial bottom-line of profit. *A. TRUEB. FALSE47. Rural-urban migration, as an economicissue, is basically about income andemployment. *A. TRUEB. FALSE48. In the Philippines, there is no concretepolicy on rural-urban migration. *A. TRUEB. FALSE49. The location choices of big labor- intensivecompanies will have bearing on migrationbetween rural…Match the following concepts with the definitions listed below them ____ a. gemeinschaft____ b. multiple-nuclei theory____ c. crude death rate____ d. urban ecology____ e. fecundity____ f. replacement level____ g. sector theory____ h. age-specific fertility____ i. social demography____ j. doubling time____ k. urbanization____ l. community____ m. gross migration rate____ n. combined statistical area (CSA)____ o. morbidity____ p. demography____ q. net migration rate____ r. metropolitan statistical area(MetroSA or MSA)____ s. fertility rate____ t. life span1. the birth-rate level at which married couples replacethemselves in the population2. rates of disease and illness in a population3. the maximum rate at which women can physically produce children4. a description of the process of urban growth emphasizingthe importance of transportation routes5. the branch of demography that studies population inrelation to its social setting6. a grouping that contains at least one city of 50,000…Suppose that potential migrants make decisions only based on comparisons of their expected incomes. Now suppose the rural wage is $1 per day. Urban modern sector employment can be obtained with 0.25 probability and pays $3 per day. The urban traditional sector pays $0.40 per day. (a) Using this information, and making assumptions as needed, can you make a prediction about whether there will be any rural-to-urban or urban to rural migration? (b) Explain your reasoning, stating explicitly any simplifying assumptions, and show all work. (c) Consider an approach that calculates an expected income in the urban sector of 0.25(3) + (0.75)(0.40) = 1.05; and note that this exceeds the rural wage of 1—would you predict that there will be rural-to-urban migration? (d) What simplifying assumptions are needed to make this a valid conclusion? (e) Now, what would the urban traditional sector daily income have to be to induce no net rural-urban migration? (f) If wages in all sectors are inflexible,…
- Describe Malthus’ pessimistic model of population. What empirical factsabout population in the world led to the break-down of the model? What are the three stages of the demographic transition? For each stagedescribe:a. Is population size increasing or decreasing?b. Is the population growth rate increasing or decreasing?Suppose that potential migrants make decisions only based on comparisons of their expected incomes. Now suppose the rural wage is $1 per day. Urban modern sector employment can be obtained with 0.25 probability and pays $3 per day. The urban traditional sector pays $0.40 per day. (d) What simplifying assumptions are needed to make this a valid conclusion? (e) Now, what would the urban traditional sector daily income have to be to induce no net rural-urban migration? (f) If wages in all sectors are inflexible, what else adjusts in this model to lead to equilibrium (how much does it adjust and what is the intuition)?Suppose 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 the U.S. during the Great Depression and WWII –fertility rates were low (between 1929 and 1945 total fertility rate (TFR) was about 2.5 per woman aged 15-44). a.What does a fertility rate of 2.5 per woman mean? Through the 1960s, the U.S. saw a baby boom (TFR of 3.4 between 1946 and 1964). However, since 1980 the TFR has fallen below 2.1. b.What may explain the fall in fertility after the 1980s? c.Even though the fertility rate fell to replacement rate in 1980, population was still growing in the U.S. during the 1980s. Explain d. Describe what happened to the proportion of old-age population: i.during the baby boom ii.after 1980Increases 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; productivityConsider the (long run') effects of inward labor migration in the Heckscher- Ohlin Model. Assume that the country trades and the relative price of two goods X and Y stavs constant. Assume X is relatively labor intensive. Intuitively explain how the increase in labor supply affects (relative) output of X and Y and how it affects factor prices ('Rybczynski Theorem'). You may want to use graphs.