Question

MPL Marginal product of labor MPL. MPL o Home L? L' Foreign 0 employment employment Migration of labor from Home to Foreign Total world labor force , and 36) Refer to the graph above. Points A, B, and C represent respectively. A) the global wage rate before migration; the wage rate in foreign after migration; the wage rate in home after migration B) the global wage rate before migration; the wage rate in home after migration; the wage rate in foreign after migration C) equilibrium wage rate after migration from foreign to home has occurred; the wage rate in home before migration; the wage rate in foreign before migration D) equilibrium wage rate after migration from home to foreign has occurred; the wage rate in foreign before migration; the wage rate in home before migration E) the wage rate in home before migration; the wage rate in home after migration; the wage rate in foreign after migration 37) In the two country model of international labor mobility A) the long-run equilibrium assumes countries' policies place significant restrictions on migration. B) the long-run equilibrium assumes that desired migration exceeds actual migration. C) the long-run equilibrium assumes that actual migration exceeds desired migration. ) the long-run equilibrium is the result of a divergence of the real wages in the two countries. the long-run equilibrium assumes that desired and actual migration are equal. ) In the two country model of international labor mobility migration has no effect on global output, although some groups are made better off. migration has no effect on global output, although some groups are made worse off. migration results in increased global output, and all groups are made better off. migration may reduce global output, although some groups are made better off. igration results in increased global output, although some groups are made worse off.

Answer 1

36.

D

These are the details, divulged by points A, B and C as per the given graph.

37.

E

The long run equilibrium is achieved, when desired migration becomes equal to the actual migration between the home and foreign country.

38.

E

Due to migration, skilled people reach to the markets where the demand for their skills are and they work to produce the higher output level. But, some unskilled or semi-skilled workers get displaced and become worse off due to the migration.