For questions 7- 10: Suppose a worker's skill-is captured by his efficiency units of labor (s). The distribution of efficiency. units in the population is such that worker i has efficiency unit 2i. There are 100 workers in the population. In deciding whether to migrate to the Utopia, these workers compare their weekly earnings at home (wo) with their potential earnings in the Utopia (wi). The wage-skills relationship in each of the two countries is given by: wo=200+s and wi=260+0.5se 7. For worker with rank:50, his/her skill-is- A. 10 unitse C. 100 units B. 20 unitse D. 200 unitse 8. If there is no migration cost, at most, A. 60; positively selectede C. 40; positively selectede workers will migrate to Utopia. The immigrant flow is B. 60; negatively selectede D. 40; negatively selected 9. For this question only, "suppose it-costs $10-to migrate. At most, flow is: A. 40; negatively selectede C. 50; negatively selectede workers will-migrate to Utopia. The immigrant- B. 40; positively selectede D. 50; positively selected

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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For questions 7- 10: Suppose a worker's skill-is captured by his efficiency units of labor (s). The distribution of efficiency
units in the population is such that worker i has efficiency unit 2i. There are 100·workers in the population. In deciding
whether to migrate to the Utopia, these workers compare their weekly earnings at home (wo) with their potential earnings:
in the Utopia (wi). The wage-skills relationship in each of the two·countries is given by:
wo=200+sand wi=260+0.5se
7. For worker with rank 50, his/her skill-is-
A. 10 units
B. 20 unitse
C. 100 units
D. 200 unitse
8. If there is no migration cost, at most,;
A. 60; positively selected
C. 40; positively selected
workers will migrate to Utopia. The immigrant flow is:
B. 60; negatively selectede
D. 40; negatively selectede
9. For this question only, suppose it costs $10- to migrate. At most,
flow is
workers will migrate to Utopia. The immigrant
A. 40; negatively selected
C. 50; negatively selectede
B. 40; positively selectede
D. 50; positively selected
10. For this question only, suppose the income of Utopia decreases $30 due to natural·hazard. At most,:
migrate to Utopia. The immigrant flow is:
A. 30; negatively selected
C. 50; negatively selected
workers will
B. 30; positively selected
D. 50; positively selected
Transcribed Image Text:For questions 7- 10: Suppose a worker's skill-is captured by his efficiency units of labor (s). The distribution of efficiency units in the population is such that worker i has efficiency unit 2i. There are 100·workers in the population. In deciding whether to migrate to the Utopia, these workers compare their weekly earnings at home (wo) with their potential earnings: in the Utopia (wi). The wage-skills relationship in each of the two·countries is given by: wo=200+sand wi=260+0.5se 7. For worker with rank 50, his/her skill-is- A. 10 units B. 20 unitse C. 100 units D. 200 unitse 8. If there is no migration cost, at most,; A. 60; positively selected C. 40; positively selected workers will migrate to Utopia. The immigrant flow is: B. 60; negatively selectede D. 40; negatively selectede 9. For this question only, suppose it costs $10- to migrate. At most, flow is workers will migrate to Utopia. The immigrant A. 40; negatively selected C. 50; negatively selectede B. 40; positively selectede D. 50; positively selected 10. For this question only, suppose the income of Utopia decreases $30 due to natural·hazard. At most,: migrate to Utopia. The immigrant flow is: A. 30; negatively selected C. 50; negatively selected workers will B. 30; positively selected D. 50; positively selected
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