6. Suppose that the immigration restrictions imposed by the Trump Administration have the effect of reducing the supply of labor in the United States. Using the production function, labor market, and product market graphs of the classical model, please show the effects of restricting immigration. Describe how the variables of the model change.
6. Suppose that the immigration restrictions imposed by the Trump Administration have the effect of reducing...
Suppose that the immigration restrictions imposed by the Trump Administration have the effect of reducing the supply of labor in the United States. Using the production function, labor market, and product market graphs of the classical model, please show the effects of restricting immigration. Describe how the variables of the model change.
5. Suppose that while sitting around bored in your dorm room one night, you and your friends decide to construct an Easter Basket Price Index (EBPI). After careful research, you come up with the following data concerning the contents of an Easter basket: item basket grass cream eggs elly beans bunnies chicks eggs stuffed bunny Hershey's kisses quantity price(2018) price(2019) $4.00 $1.00 $5.00 $2.00 2 $2.00 $3.00 $1.00 $6.00 4 $2.00 $3.00 $2.00 1 $10.00 $15.00 $1.00 $0.50 $4.00 4...
One of the changes the Trump administration has suggested for legal immigration is to change the preference system to one that places a greater emphasis on merit or skill based immigration, with a lesser (or no) emphasis on family reunification. Many countries around the world emphasize a merit-based immigration instead of family reunification, including Canada. Do you think we should place a greater emphasis on merit or needed skills? Why or why not? If not, why should we continue to...
Using the labor market, production function. and AS/AD graphs of the classical model, show the effects of immigration (an increase in labor supply). What are the effects on real wages, the quantity of labor, real GDP, and prices? Explain and show graphically.
Suppose you work for the Immigration and Naturalization Service (INS) and are responsible to access the potential impact of an increase in immigration on the domestic labor market. Since you’re a trained labor economist you’ve correctly identified that you have a market for domestic assembly plant workers parameterized by the labor supply and demand equations LSD=?30+6Wand LD=170?2W where W = an hourly wage and L = 100’s of workers. You also know that the migrating workers will have a labor...
Complete all problems. 75 point points total. A possible 7 extra credit points. Please type all prose responses and produce clean graphs wherever appropriate. Generous use of graphs encouraged. Show all work for algebra. Powerpoint is one good tool for making clean graphs. 1. Suppose there is a sudden increase in the price of crude oil. a. How will this change the equilibrium price and quantity in the market for gasoline? (2 points) b. Based on your answer in part...
6. International joint ventures Which of the following statements about joint ventures are true? Check all that apply. A joint venture may suffer from the problem of two masters." Dividing joint-venture ownership equally prevents deadlocks in decision making Joint ventures lessen the distinction between local and foreign production. A new joint venture creates welfare gains when it yields previously unattainable cost reductions. The following graph shows labor markets in the United States and Mexico. The horizontal axis denotes the total...
9. Consider a Classical model with the following specifications in Q1, 2019: . Labor Supply: NS-1%, Cobb-Douglas Production Function . The Quantity Theory of Money accurately describes aggregate demand, The Theory of Distribution holds, Parameter values: [y, a, A, K, M, V] [30,0.3, 130, 500, 2500,40]. Suppose a reduction in labor law regulations leads to an outward shift in labor supply, represented as an increase in y from 30 to 32 during Q2, 2019. Assume that everything else stays the...
Suppose that under a new law all businesses must pay a tax equal
to 6% of their sales revenue. Assume that this tax is not passed
on to consumers. Instead, consumers pay the same prices after the
tax is imposed as they did before.
1.) Use the line drawing tool to show the effect of this change
on the labor market. Properly label your new line.
2.) Use the point drawing tool to identify the new equilibrium
real wage and...
Chapter4 just introduced what
is Dornbusch-Fischer-Samuelson mode, no other information.
Explain the effect of an increase in country 2's productivity on the pattern of trade, relative wages, and real income in each country using the Dornbusch-Fischer-Samuelson model (appendix to chapter 4). A good answer will be a carefully written explanation supplemented by graphs. In a five country-two commodity Classical model of trade, where the autarky price ratios in all five countries are different, can you conclude a priori that all...