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Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Please answer fast me arjent

Transcribed Image Text:$2,600
$2,400
$2,200
$2,000
$1,800
$1,600
$1,400
$1,200
$1,000
S800
D
$600
$400
$200
1,000
2,000
3,000
4,000
5,000
6,000
7,000
1,000
9,000
Labor (Persons)
Consider the information in the file named Labor Market 1, also shown above.
Assume that the supply-of-labor numbers in that file pertain to native-born
workers. In other words, currently, there are no immigrants in the country. Now
suppose that the government opens its international borders and accepts 3,000
foreign-born workers into the country. Assume further that all of these
immigrant workers find jobs and become employed. Finally, assume that the
immigrant workers are of the same skills as the native born workers. Continue
assuming that the number of foreign-born workers will be constant at 3,000 and
they will all be employed under all scenarios. This is not a totally realistic
assumption, but it will make our calculations less cumbersome. This could be a.
realistic description of situations in which the domestic country enters into
contract with a foreign country to secure jobs for foreign guest workers.
After the entry of the immigrant workers:
Equilibrium wage rate =
dollars per month per person.
Number of natives employed% =
persons.
%3D
Capital income =
dollars.
Total labor income =
dollars, of which:
Native labor income-
dollars.
Immigrant income=
dollars.
Monthly Wage Rate (W)
Expert Solution
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