Question 1

In the very long run, theoretically there will be
Equilibrium if capital and labor are free to migrate.If
And when this ever happens, what will the global
Economy experience?

Accepted Answer

If capital and labor are free to migrate and an equilibrium is reached, all factors of production will be paid their marginal product, leading to an equality of wages and marginal product. Additionally, the returns to the owners of capital will also be equalized. Finally, if the economy is operating at a Pareto-efficient level, this means that resources are being utilized in the most efficient way possible, leading to the highest standard of living for all individuals. Therefore, D is the correct choice.

Question 2

Which of the following is nearly always TRUE of highly
Educated immigrants?

Accepted Answer

Highly educated immigrants often leave their source nations for better opportunities in higher-paying recipient nations. This brain drain can result in a loss of human capital and potential economic growth for the source nation. However, the recipient nation benefits from the skills and knowledge that the highly educated immigrants bring, leading to potential economic growth and innovation. Therefore, highly educated immigrants often impose costs on the source nation in terms of lost opportunity, but provide benefits to the recipient nation. Choice A and D are incorrect as they suggest that highly educated immigrants only impose costs on the recipient nation, which is not always true. Choice B is incorrect as highly educated immigrants often move from lower-paying nations to higher-paying ones.

Question 3

Which of the following terms is used to describe
Payments made by foreign resident workers to
Families in their home nations or in the form of taxes
Paid to their home nations?

Accepted Answer

Worker remittances are payments made by foreign resident workers to families in their home nations or in the form of taxes paid to their home nations. Worker redistribution, worker earnings, and worker repayments do not accurately describe this type of payment.

Question 4

The economic benefit to immigrating workers is:

Accepted Answer

The economic benefit to immigrating workers is the potential to earn higher wages than they would in their home country, which is the present value of higher wages minus the value of the costs involved with the immigration process. Political freedom, living without paying taxes, and freedom from discrimination and poverty may be potential benefits of immigration, but they are not necessarily economic benefits.

Question 5

Suppose that an economy has 1,500 units of capital
and 1,000 workers.This economy produces computers
and shoes.Computer production requires 4 units of
capital per worker and shirt production requires 1 unit
of capital per worker.
A) Solve for the amount of labor and capital used in
each industry.
If you answered Question 6 at the end of textbook
Chapter 5, you know that:
(1) KC + KS = the total capital stock, and LC + LS =
the total labor force; and
(2) K = 4 × LC, and KS = 1 × LS.
B) Suppose that the number of workers increases to
1,250 due to immigration, keeping total capital fixed
at 1,000.Solve for the distribution of labor and capital
between the two sectors.

Accepted Answer

The answer of Suppose that an economy has 1,500 units...

Question 6

Economists conclude that the effect on our world's
Standard of living as a result of labor and capital
Migration has been:

Accepted Answer

Economists generally agree that labor and capital migration leads to a more efficient allocation of resources, as they move to their highest-valued use. This, in turn, leads to increased productivity and economic output, ultimately raising the standard of living. However, there may be short-term negative impacts on specific groups of workers, particularly those in industries or regions facing increased competition. Overall, however, the long-term benefits of migration are considered positive. Therefore, option B is the best choice.

Question 7

Which of the following is a key assumption in factor
Price insensitivity in response to a fall in FDI?

Accepted Answer

The key assumption of factor price insensitivity is that factor prices remain unchanged despite changes in FDI, which is not directly related to changes in technology or prices of goods.

Question 8

Which of the following BEST describes the short­run
Effects of FDI inflows to Singapore during the latter
Part of the twentieth century?

Accepted Answer

According to the specific-factors model, FDI should raise the return to the abundant factor of production and lower the return to the scarce factor of production. As Singapore is abundant in capital and scarce in labor, the specific-factors model predicts that FDI should increase wages and decrease the rental on capital. The short-run effects of FDI inflows to Singapore during the latter part of the twentieth century confirmed this prediction, as wages rose while the rental on capital fell. Therefore, choice B is the best answer.

Question 9

According to economists, which of the following
Statements about international capital mobility is
CORRECT?

Accepted Answer

According to economists, international capital mobility, i.e. the movement of money, investments and financial assets across borders, has had a positive effect upon world GDP. This is because it allows for more efficient allocation of capital and resources, leading to higher economic growth and development. However, it can also lead to increased volatility and instability in financial markets, which can have negative consequences.

Question 10

What three principles does Giovanni Peri describe as
important to the on­going debate on immigration to
the United States?

Accepted Answer

The answer of What three principles does Giovanni Peri describe...

Question 11

Economist George Borjas has estimated the net
Benefits (+)/costs (-) to the United States from labor
Immigration to be approximately:

Accepted Answer

George Borjas has estimated the net benefits of labor immigration to the United States to be approximately +0.1% of GDP, reflecting a small positive impact on the economy.

Question 12

As of 2005 the European Union had:

Accepted Answer

As of 2005, the European Union had 25 members.

Question 13

Which of the following is a key assumption in proving
The gains from immigration?

Accepted Answer

The answer of Which of the following is a key...

Question 14

In the short run, which of the following will reduce the
Gains from labor migration to the recipient nation?

Accepted Answer

If workers remit more than the value of their marginal products, it means that the recipient nation is losing more economic value than it gains from the labor of these workers, reducing the overall gains from migration.

Question 15

Some economists have proposed a "brain drain" tax to
Be administered though the United Nations.This tax
Would:

Accepted Answer

The "brain drain" tax is proposed to repay the nations of origin of highly educated immigrants for their losses. This is because these countries invest in the education and training of individuals who then migrate to developed countries in search of better opportunities, leaving their countries with a shortage of skilled labor. The tax would compensate for this loss by requiring developed countries to pay a fee to the United Nations, which would then distribute the funds to the countries of origin of the highly skilled immigrants.

Question 16

Does the European Union allow migration among its
member countries?

Accepted Answer

The answer of Does the European Union allow migration among...

Question 17

Economists who have studied the impact of
Immigration on world welfare generally find after
Considering impacts on all constituencies that world
GDP has _______ as a result of immigration of
Workers and FDI.

Accepted Answer

Economists generally find that world GDP has risen as a result of immigration of workers and foreign direct investment (FDI).

Question 18

Without productivity growth, what is the long­run
Effect of labor migration on the receiving country?

Accepted Answer

The answer of Without productivity growth, what is the long­run
Effect...

Question 19

The gains from immigration of labor or capital to the
Recipient nation can be summarized as:

Accepted Answer

The gains from immigration of labor or capital to the recipient nation can be summarized as the gain in domestic real GDP minus costs from immigration. This means that the increase in resources from immigration leads to an increase in the country's output, which in turn leads to an increase in the country's real GDP. However, there may also be costs associated with immigration, such as the need to provide social services and infrastructure to accommodate the new immigrants. The net gain or loss from immigration will therefore depend on the balance between the benefits and costs.

Question 20

Which of the following statements does NOT describe
The effect(s) of labor immigration?

Accepted Answer

The statement "The source nation experiences a decline in the overall marginal product of labor as surplus workers emigrate" does describe the effect of labor immigration. All other statements describe the effects of labor immigration.

Quiz 5: Movement of Labor and Capital Between Countries

In the very long run, theoretically there will be Equilibrium if capital and labor are free to migrate.If And when this ever happens, what will the global Economy experience?

Which of the following is nearly always TRUE of highly Educated immigrants?

Which of the following terms is used to describe Payments made by foreign resident workers to Families in their home nations or in the form of taxes Paid to their home nations?

The economic benefit to immigrating workers is:

Economists conclude that the effect on our world's Standard of living as a result of labor and capital Migration has been:

Which of the following is a key assumption in factor Price insensitivity in response to a fall in FDI?

Which of the following BEST describes the shortrun Effects of FDI inflows to Singapore during the latter Part of the twentieth century?

According to economists, which of the following Statements about international capital mobility is CORRECT?

What three principles does Giovanni Peri describe as important to the ongoing debate on immigration to the United States?

Economist George Borjas has estimated the net Benefits (+) /costs (-) to the United States from labor Immigration to be approximately:

As of 2005 the European Union had:

Which of the following is a key assumption in proving The gains from immigration?

In the short run, which of the following will reduce the Gains from labor migration to the recipient nation?

Some economists have proposed a "brain drain" tax to Be administered though the United Nations.This tax Would:

Does the European Union allow migration among its member countries?

Economists who have studied the impact of Immigration on world welfare generally find after Considering impacts on all constituencies that world GDP has _______ as a result of immigration of Workers and FDI.

Without productivity growth, what is the longrun Effect of labor migration on the receiving country?

The gains from immigration of labor or capital to the Recipient nation can be summarized as:

Which of the following statements does NOT describe The effect(s) of labor immigration?

Quiz 5: Movement of Labor and Capital Between Countries

In the very long run, theoretically there will be Equilibrium if capital and labor are free to migrate.If And when this ever happens, what will the global Economy experience?

Which of the following is nearly always TRUE of highly Educated immigrants?

Which of the following terms is used to describe Payments made by foreign resident workers to Families in their home nations or in the form of taxes Paid to their home nations?

The economic benefit to immigrating workers is:

Economists conclude that the effect on our world's Standard of living as a result of labor and capital Migration has been:

Which of the following is a key assumption in factor Price insensitivity in response to a fall in FDI?

Which of the following BEST describes the short­run Effects of FDI inflows to Singapore during the latter Part of the twentieth century?

According to economists, which of the following Statements about international capital mobility is CORRECT?

What three principles does Giovanni Peri describe as important to the on­going debate on immigration to the United States?

Economist George Borjas has estimated the net Benefits (+) /costs (-) to the United States from labor Immigration to be approximately:

As of 2005 the European Union had:

Which of the following is a key assumption in proving The gains from immigration?

In the short run, which of the following will reduce the Gains from labor migration to the recipient nation?

Some economists have proposed a "brain drain" tax to Be administered though the United Nations.This tax Would:

Does the European Union allow migration among its member countries?

Economists who have studied the impact of Immigration on world welfare generally find after Considering impacts on all constituencies that world GDP has _______ as a result of immigration of Workers and FDI.

Without productivity growth, what is the long­run Effect of labor migration on the receiving country?

The gains from immigration of labor or capital to the Recipient nation can be summarized as:

Which of the following statements does NOT describe The effect(s) of labor immigration?

Which of the following BEST describes the shortrun Effects of FDI inflows to Singapore during the latter Part of the twentieth century?

What three principles does Giovanni Peri describe as important to the ongoing debate on immigration to the United States?

Without productivity growth, what is the longrun Effect of labor migration on the receiving country?