The graphs below show demand for labor in two countries, A and B, and several vertical labor supply curves. Use thesediagrams to answer the question about the effects of migration from one country to the other in search of a higherwage. Let the amount of migration (change in labor supply) be equal to the (identical) horizontal distance between thesupply curves in both graphs. Mig.pngWhat is the effect of this migration on the welfare of workers who migrate?Group of answer choicesThey gain area (g+h)They gain area (a+b+c).They gain area (g+h+e)They gain area g

First, we need to understand the scenario. The question is about the effect of labor migration from…

Answered: The graphs below show demand for labor…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Use the figure below to answer the following question. Real wage rate (2002 dollars per hour) 25 LS 20 15 10 LD LDo O 50 100 150 200 250 300 Labour (billions of hours per year) From the figure, as a result of the rightward shift in the demand curve for labour from LDO to LD1, potential GDP , -- and potential GDP per hour of labour 1) increases; increases 2) decreases; increases 3) increases; decreases 4) decreases; decreases 5) increases; does not change
None
21. It takes y* years to graduate from college. For workers in Group A (high-skill workers) the cost of going to college is $5,000 per year (CA=5,000y). For workers in Group B (low-skill workers) the cost of going to college is $10,000 per year (CB=10,000y). Employers cannot observe the skill of job candidates, but they can observe whether or not they graduated from college. Employees will be offered $60,000 if they graduate from college, and they will be offered $30,000 if they do not have a college degree. In equilibrium, a college degree can be used as a signal of the worker's type if a. 4
Explain the theory of factor mobility. Consider this theory, and create a trade agreement between two to four countries that does not already exist. Explain why this agreement would be beneficial to each country and how the theory of factor mobility connects to this trade agreement.
Suppose that education is the only factor that affects productivity and that an additional year of education raises wages by 2%. Suppose in 2011 gender wage gap was 13%, and the average man had 15 years of education while the average women had 14 years of schooling. a) Using the wage gap decomposition technique, calculate how much of the 13% wage differential is due to discrimination? b) Now suppose in 2021 the gender wage gap is 10%, but the average woman’s education level is increased to 17 year and the average man’s education increases to16 years. (Assume that the return to education stays same at 2%), Was there a decrease or an increase in wage discrimination in the decade? Why?
Birthrate in Selected European Countries, 1960 to 2006 3.5 35 2.5 2 1.5 1 0.5 0 90 85 80 Life Expectancy in Selected European Countries, 1960 to 2007 75 70 65 60 1960-1964 1960 1970-1974 Belgium Czech Republic Germany Hungary Portugal 1970 1980-1984 1980 1990-1994 1990 1995-1999 2000 Belgium Czech Republic Germany Hungary Portugal 2000-2004 2006 2007
Economics: Labor Economics Question: 1 Migration is expected to occur if movement between two markets is frictionless unless: A. Value of Marginal Product (VMPe) is equal in both markets B. Their populations are equal C. They have the same labor demand function D. Total gains from trade are equal across both markets Question: 2 The market wage increases by 8%. In response the firm reduces its employment by 5%. What is the elasticity of labor demand? Show your work. Is the demand for labor elastic or inelastic? What do you think will happen to this coefficient in the long run? Thank you for your support and help Training Agent!
The figure describes the effect of immigration on unemployment in the labour market. The labour market equilibrium is at A and C before and after the influx of immigration, respectively. Based on this figure, which of the following statements is correct? Real wage 40 20 3 3 Wage-setting curve (before immigration) B Wage-setting curve (after) immigration) Labour force (before Immigration) Price- setting curve Labour force (after immigration) 4 4.5 5 5.5 Employment, millions of workers 6 Firms claim a higher markup in the new equilibrium. The unemployment rate is unchanged in the new equilibrium. All incumbent workers are no worse off in the new equilibrium. All incumbent workers are unaffected while the labour market adjusts.
Full answer to question a and b
Consider the standard Harris-Todaro framework for rural-urban migration from class. I.e. there is a minimum wage in the formal urban sector and urban residents who fail to get a formal sector job wind up unemployed. In contrast, the agricultural labor market has no frictions. Now let's imagine that, due to climate change and mismanagement of water resources, the water table falls, reducing the marginal product of labor - and hence the wage - in the rural, agricultural sector. What effect would this have on the unemployment rate in urban areas? Choose the best option A. The urban unemployment rate would go up. B. The urban unemployment rate would stay the same. C. There is not enough information to determine what will happen to the urban unemployment rate. D. The urban unemployment rate would go down.
Consider a simple demand-and-supply model of a competitive labour market in a small town. The demand and supply curves for labour are given by Demand: w= 22 - 3LD Supply: w=4+3LS where w is the wage ($ per hour) and L is the number of hours of employment (measured in thousands of hours per month). a. Use the line drawing tool to plot the demand and supply curves in the graph at the right. Use points with labour hours value of 0 and 5 to draw the lines. Label the lines properly. Carefully follow the instructions above, and only draw the required objects. C Wage ($ per hour) 24- 22- 20- 18- 16- 14- 12- 10- 8- 6- 4- 2- 0- 0 Labour Market 2 3 4 1 Labour (thousands of hours per month) + 5
Consider the (long run') effects of inward labor migration in the Heckscher- Ohlin Model. Assume that the country trades and the relative price of two goods X and Y stavs constant. Assume X is relatively labor intensive. Intuitively explain how the increase in labor supply affects (relative) output of X and Y and how it affects factor prices ('Rybczynski Theorem'). You may want to use graphs.

SEE MORE QUESTIONS

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS