In a country called Uncle Sam Land (USL), the labor demand curve is given by: W = K - 4L Where W is the wage rate, K is a variable determined by accumulated capital stock in the country, and L is the labor force in the country. K = 500 is supplied by the capitalists in USL. Next to USL, is Aunt Lewis Land (ALL). ALL is poor and has a Dual Economy. A large numbers of workers in the agricultural sector there are not productive - they are disguised unemployed. They are looking for jobs. Wage in ALL is institutionally fixed at W = 10. Although USL had built a strong impenetrable border wall to prevent ALL migrants from moving in, a fırm in USL, called "Coyote International," was able to fly over the impenetrable wall in a helicopter and bring job seekers from ALL who wanted to migrate to USL. As a result of this, USL labor force increases to 110 (L = 110 now). All workers work no matter what the wage is. What is the new national income in USL after migration takes place? 6242 45000 O 26,242 O 30,800 O None of the above

In a country called Uncle Sam Land (USL), the labor demand curve is given by: W = K - 4L Where W is the wage rate, K is a variable determined by accumulated capital stock in the country, and L is the labor force in the country. K = 500 is supplied by the capitalists in USL. Next to USL, is Aunt Lewis Land (ALL). ALL is poor and has a Dual Economy. A large numbers of workers in the agricultural sector there are not productive - they are disguised unemployed. They are looking for jobs. Wage in ALL is institutionally fixed at W = 10. Although USL had built a strong impenetrable border wall to prevent ALL migrants from moving in, a fırm in USL, called "Coyote International," was able to fly over the impenetrable wall in a helicopter and bring job seekers from ALL who wanted to migrate to USL. As a result of this, USL labor force increases to 110 (L = 110 now). All workers work no matter what the wage is. What is the new national income in USL after migration takes place? 6242 45000 O 26,242 O 30,800 O None of the above

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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8
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Full answer to question a and b