Consider a situation in which there are just two countries: an Origin, and a Destination country. Wages in the origin country are given by: Wo=1+2s Wages in the destination are given by: Wd=7+1s where s are years of schooling. Migrating from the Origin to the Destination country requires paying a fixed cost of 1, corresponding to a Visa fee. a. Draw a figure in which the y-axis represents wages net of migration costs in each of the countries, and the x-axis represents years of schooling.

Consider a situation in which there are just two countries: an Origin, and a Destination country. Wages in the origin country are given by: Wo=1+2s Wages in the destination are given by: Wd=7+1s where s are years of schooling. Migrating from the Origin to the Destination country requires paying a fixed cost of 1, corresponding to a Visa fee. a. Draw a figure in which the y-axis represents wages net of migration costs in each of the countries, and the x-axis represents years of schooling.

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Consider a situation in which there are just two countries: an Origin, and a Destination country.
Wages in the origin country are given by:
Wo=1+2s
Wages in the destination are given by:
Wd=7+1s
where s are years of schooling.
Migrating from the Origin to the Destination country requires paying a fixed cost of 1,
corresponding to a Visa fee.
a. Draw a figure in which the y-axis represents wages net of migration costs in each of
the countries, and the x-axis represents years of schooling.

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Step 1: Define wages.

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