Question

QUESTION 3 Article Summary Due to political, economic, demographic, and cultural reasons, North Africa is experiencing an exodus of some of its brightest students. Limited job opportunities for the young, as well as limited space and poor facilities at universities, have pushed academics abroad for a growing number of North African students. Although this brain drain is leaving the region with a shortage of young, trained professionals, some students have chosen to return home following their graduation, while others who remain abroad send money home to families. Researcher Samia Nour found that these financial remittances from abroad equal the total amount of foreign direct Investment for the region. The governments of North Africa have begun to realize the unsustainability of this brain drain, and have enacted policy which requires students with scholarships to return home to work following graduation or else repay all costs of their education. Source: Johan Savstrom, "Brain drain of North African scholars," Nordic Africa Institute, June 13, 2017 Refer to the Article Summary. In North Africa, many students are leaving the country to study abroad, but in some countries, less- educated citizens are the primary group to leave. Should an outflow of citizens leave a country with a smaller but more productive workforce and the capital per hour worked does not change, there would be the per-worker production function in that country. a movement down an upward shift of a movement up a downward shift of

Answer 1

Keeping the Capital per hour same and with exodus of less educated group the output per capital will increase for all level of capital as Y/L= A(K/L) ^$\alpha$ hence the there would be an upward shift of per worker production function in that country