EP ECONOMICS,AP EDITION-CONNECT ACCESS
20th Edition
ISBN: 9780021403455
Author: McConnell
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 23, Problem 6DQ
To determine
Brain drain.
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6. What is a "brain drain" as it relates to international migra-
tion? If emigrants are highly educated and received greatly
subsidized education in the home country, is there
any justi-
fication for that country to levy a "brain drain" tax on them?
Do you see any problems with this idea? LO23.3
On your diagram, illustrate and explain how the wage increase can lead them to have:
more consumption and more free time
• more consumption and less free time
• less consumption and more free time
this is the diagram, are you able to make a copy of that and illustrate the answer
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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
Chapter 23 Solutions
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- Measured in absolute numbers, the level of immigration during the 1990s into the United States was compared with the levels of previous decades. When considered as a percentage of the population at the time, the level of immigration into the United States during the 1990s was_ decades of the twentieth century. than the levels experienced during the earlier O lower, higher O lower, lower O higher, lower O higher, higherarrow_forwardP 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:arrow_forwardIf the quantity of labor supplied is less than the quantity of labor demanded, then we can expect: O interest rates to decrease O wages to decrease O interest rates to increase O wages to increase Previous Next » W ASUS 15 7 8arrow_forward
- A software company in Silicon Valley uses programmers (labor) and computers (capital) to produce apps for mobile devices. The firm estimates that when it comes to labor, MPL = 5 apps per month while PL = $1,000 per month. And when it comes to capital, MPC = 8 apps per month while PC = $1,000 per month. If the company wants to maximize its profits, it should: LO16.5 a. Increase labor while decreasing capital. b. Decrease labor while increasing capital. c. Keep the current amounts of capital and labor just as they are. d. None of the above.arrow_forward16 Consider a Ricardian trade model where both countries have expenditure share q =0.2 on manufactures, Country 1 has Am =1 and As=4 and L= 100 while Country 2 has Am*=As*= 0.5 and L*= 200. With free trade, which of the following is true? a.The relative wage is w/w*=8 b. Country 2 produces 100 manufactures and exports 80 manufactures c.Country 1 produces 400 services and exports 80 services d.All of the other optionsarrow_forwardIn 38 low-income and emerging economies with GDP per capita below $25,000 tracked by World Bank, the induced terms of trade movements accounted for fluctuations on average for all those countries. O 20 percent of GDP O 40 percent of GDP O 30 percent of GDP O 10 percent of GDParrow_forward
- 7) Suppose that the figure below shows the returns to skills in a source and destination country. Discuss the skill selectivity of migration from the source country. Returns in Destination Country Returns in Source Country Skills This graph is from Borgas Labor Economicsarrow_forwardSuppose that the share of population employed in Country B is 60 percent, and that Countries B and D have the same real GDP per capita. Based on the information in the table, what share of Country D's population must be employed? Country Population (millions) Average Labor Productivity ($) 2,000 A B с O E Select one: a. 24 percent O b. 12 percent O c. 8.3 percent O d. 83.3 percent 100 150 75 250 95 10,000 25,000 50,000 60,000arrow_forwardAccording to economists, which of the following statements about international capital mobility is CORRECT? CO International resource mobility has had a negative effect upon world GDP. O International resource mobility has had no effect upon world GDP. O International resource mobility has had a positive effect upon world GDP. International resource mobility has had such a small effect upon world GDP that it is not worth measuringarrow_forward
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