LSCPA MICROECONOMICS CONNECT ACCESS
21st Edition
ISBN: 9781260720761
Author: McConnell
Publisher: MCG
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Chapter 25, Problem 2DQ
To determine
Migration.
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In what respect is the economic decision to move across international borders an investment decision? Why do economic migrants move to some countries, but not to others? Cite an example of an explicit cost of moving; an implicit cost of moving. How do distance and age affect the migration decision? How does the presence of a large number of previous movers to a country affect the projected costs and benefifits of subsequent movers?
In what respect is the economic decision to move across international borders an investment decision? Why do economic migrants move to some countries but not to others? Cite an example of an explicit cost of moving; an implicit cost of moving. How do distance and age affect the migration decision? How does the presence of a large number of previous movers to a country affect the projected costs and benefits of subsequent movers?
a) In what respect is the economic decision to move across international borders an investment decision?
b) Why do economic migrants move to some countries but not to others? Cite an example of an explicit cost of moving; an implicit cost of moving.
c) How do distance and age affect the migration decision?
c) How does the presence of a large number of previous movers to a country affect the projected costs and benefits of subsequent movers?
Chapter 25 Solutions
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- What are spillover effects and how do they affect growth? (LO27-4)arrow_forwardUse the accompanying table for Neon and Zeon to answer the questions that follow. Assume that the wage rate shown equals hourly output and income and that the accumulated output and income are the sum of the marginal revenue products (MRPs) of each worker. a. Which country has the greater stock of capital and technological prowess? How can you tell?b. Suppose the equilibrium wage rate is $19 in Neon and $7 in Zeon. What is the domestic output (= domestic income) in the two countries?c. Assuming zero migration costs and initial wage rates of $19 in Neon and $7 in Zeon, how many workers will move to Neon? Why will not more than that number of workers move to Neon?d. After the move of workers, what will the equilibrium wage rate be in each country? What will the domestic output be after the migration? What is the amount of the combined gain in domestic output produced by the migration? Which country will gain output; which will lose output? How will the income of native-born workers be…arrow_forward1. Try to describe the global economic crisis on world trade and commodity prices because of the COVID and use the Stopler-Samuelson theorem to predict the effect on income distribution in Australia. It should be imagined Australia is a specific factor economy with 'mining' in Queensland and Western Australia on the one hand, and a sector included manufacturing, agriculture and services in the other states. Assume that there is mobile labour between these two sectors, that there is no unemployment, and that Australia is a price taker for its exports.arrow_forward
- In Country A, the production of 1 bicycle requires using resources that could otherwise be used to produce 11 lamps. In Country B, the production of 1 bicycle requires using resources that could otherwise be used to produce 15 lamps. Which country has a comparative advantage in making bicycles? LO26.2 a. Country A. b. Country Barrow_forwardUsing the demand and supply of loanable funds, demonstrate the effect of the following on the interest rate. As a result, what would you expect to be the impact of the change on growth? (LO9-3) a-Government increases spending. b-Businesses become more productive. c-The people as a whole save more.arrow_forwardSuppose that the current (first) generation consists of 1 million people, half of whom are women. Assume the total fertility rate is 1.2 and the only way people die is of old age. Instructions: In part a, enter your answer as a whole number. In parts b and c, round your answers to 2 decimal places. a. How big will the fourth generation (the great-grandchildren) be? ___ people b. How much smaller (in percentage terms) is each generation than the previous generation? ___ percent c. How much smaller (in percentage terms) is the fourth generation than the first generation? ___ percentarrow_forward
- 3) Suppose that Alpha and Omega have identically sized working-age populations but that total annual hours of work are much greater in Alpha than in Omega. This could happen because more of Alpha’s labor force is unemployed, or Omega workers place a lower value on leisure than those in Alpha. Omega’s labor force is underemployed, or Omega workers place a higher value on leisure than those in Alpha. Alpha’s labor force is underemployed, or Omega workers place a higher value on leisure than those in Alpha. more of Omega’s labor force is unemployed, or Omega workers place a lower value on leisure than those in Alpha.arrow_forwardSuppose 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?arrow_forwardIn one way, the impact of immigration and inward foreign direct investment are structurally the same in the short run, namely, the return on the incoming factor (i.e., labor or capital) decreases. Name two ways that the impacts of immigration and foreign direct investment differ structurally in the short run. (HINT: It’s NOT that wages go down in one case, and capital rents go down in the other).arrow_forward
- 1. Suppose that the United States and Canada have the factor endowments given in Table 1 below. Table 1 ..................United States......... Canada Capital..... 80 machines ...........40 machines Labour..... 40 workers ..............80 workers a) According to the above table, which country is relatively more labor-abundant? Which country is relatively more capital-abundant? Explain your answer with working calculations and a relevant diagram. (factor abundance diagram for the countries) b) Suppose further that the production requirements for a unit of steel is 4 machines and 2 workers, and the requirement for a unit of bread is 2 machines and 4 workers. Which good, bread or steel, is relatively capital-intensive, and which good is labor-intensive? Explain your answer with a relevant diagram. (factor intensity diagram for both commodities) c) Which country would export steel? Why? Explain which trade theory that predicts such a pattern of trade.arrow_forward. How are people coping with the visit or return of the immigrants? 3. What changed among the immigrants/overseas workers when they went back (or visited) home?arrow_forward1. How Covid19 Pandemic mitigates its immediate impact on Demographic aspects? 2. How in many ways our Philippine Economy currently functions in terms of labor markets and migration?arrow_forward
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