Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 25, Problem 6DQ
To determine
Brain drain.
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Students have asked these similar questions
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
Figure 9.2, U.S. Labor Market
Figure 9.2 represents the U.S. labor market. Assume that labor and capital are the only factors of
production. Also assume the initial supply schedule of labor is denoted by S, and consists entirely of
native U.S. workers. The demand schedule of labor is denoted by Do
Hourly Wage/S
O
O
18
Select one:
O
12
O
9
So
2
Consider Figure 9.2. Policies that permit Mexican workers to freely migrate to the United States would likely be resisted by:
S₁
a. U.S. capital owners
b. Native U.S. workers
3
Do
6
Quantity of
Labor
c. U.S. capital owners and native U.S. workers
d. Neither U.S. capital owners or native U.S. workers
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
¥50
650
600
SS-O
480
400
350
-300
250
200
150.
SO
1-720
360
240
1
2
1
4
T
6
8
S
C
c=200214-4) A
10
(
12
1
14
BC=30(24-1)
1
1
16
18
4C2
IC₂
20
22 24
slope-20
Knowledge Booster
Similar questions
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- The figure shows the U.S. supply of labor curve. What would be the effect on the labor supply curve of U.S. policies that restrict immigration? O A. A rightward shift of the supply of labor curve O B. A movement downward along the supply of labor curve from a point such as A to a point such as B O C. A movement upward along the supply of labor curve from a point such as C to a point such as B O D. A leftward shift of the supply of labor curve OE. None of the above answers are correct because there would be no change in the supply of labor curve. Real wage rate (2009 dollars per hour) 100 75 50 25 0 100 LS + 400 200 300 Labor (billions of hours per year)arrow_forwardWhat is the impact on the labour market due to the arrival of a boatload of Haitian migrants? Select one: O a. labour demand shifts to the left; wage rate decreases and level of employment decreases O b. labour supply shifts to the right; wage rate decreases and level of employment is higher O. labour demand shifts to the right; wage rate increases and level of employment increases O d. labour supply shifts to the left; wage rate increases and level of employment is lowerarrow_forward7) 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_forward
- 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:arrow_forwardQUESTION 22 P COUNTRY 1 25 20 15 10 5 d1 Q 0 0 3 6 9 1215182124 s1 IP INTERNATIONAL MARKET 25 20- 15 10- LO P 5 S2 P 0 0 3 6 9 1215182124Q 25 20- S1 15 IP 10 D2 5 D1 0 COUNTRY 2 ⠀⠀ 22. What is the net welfare gain from trade to the economy of country 1? (hint: the formula for calculating the area of a triangle is 1/2 times the base times the height) a) 3 b) 6 c) 9 d) 13.5 e) 18 s2 IP d2 0 3 6 9 1215182124Qarrow_forwardWhy are so many state and local governments greatly concerned about the Federal government’s allegedly lax enforcement of the immigration laws and congressional proposals to grant legal status (amnesty) to the 12 million illegal immigrants in the United States? How might an amnesty program affect the flflow of future border crossings?arrow_forward
- If a nation with an aging population admits more low-skilled immigrants: wealth disparity decreases. O income disparity increases. job creation is reduced. O income mobility is reduced.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_forwardA 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_forward
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