An indifferent person stays in the home country

Assignment Help Microeconomics
Reference no: EM13707636

Consider the following model of international migration. The potential migrants originate in country 0, the source country. Worker 1 has 1 efficiency unit of skill, worker 2 has 2 efficiency units of skill, worker 3 has 3 efficiency units of skill and so on. There are 100 workers in the population. In deciding whether to migrate to the United States, these workers compare their earnings in the source country (w0) with their potential earnings in the United States (w1). Suppose it costs $10 to migrate to the United States.

The wage-skills relationship in each of the two countries is given by:

w0 = 350 + 0.75s

w1 = 300 + 1.50s (Where s is the number of efficiency units of skill the worker possesses )

a) Assume an indifferent person stays in the home country. How many people will choose to move to the U.S? What is their average skill level? What are their average earnings?

b) Assume an indifferent person stays in the home country. How many people will choose to stay in the home country? What is their average skill level? What are their average earnings?

 

Reference no: EM13707636

Questions Cloud

Current performance of the u.s. banking industry : Current performance of the U.S. Banking Industry a. Comparison between U.S. Banking Industry vs. other large economies. i. European Union ii. ii. United Kingdom b. Problems they are facing right now. c. Evaluate the current situation.
Budgeting assignment : Budgeting assignment. Imagine that you are planning a two-hour initial discussion about budgeting and capital purchases for newly appointed first-line supervisors. Determine the topics you would include and explain why.
According to solow''s model of economic growth : 10. According to Solow's model of economic growth, what determines the rate at which a nation's income per person grows? Based on that model, what sort of public policies would be able to increase the growth rate of income per person? Give at l..
Taxand government expenditure areexpansionary to theeconomy : Y= C0 +Io+Go+X0-M, M=mo+m1yd,C=co+c1yd,T=tY and Yd=Y-T Show that equal change in taxand government expenditure areexpansionary to theeconomy?
An indifferent person stays in the home country : a) Assume an indifferent person stays in the home country. How many people will choose to move to the U.S? What is their average skill level? What are their average earnings?) Assume an indifferent person stays in the home country. How many pe..
Find the magnitude of its average acceleration : At an air show, a jet plane has velocity components vx = 725km/h and vy = 515km/h at time 3.85s and vx = 928km/h and vy = 390km/h at time 7.52s. find the magnitude of its average acceleration
What is the minimum time necessary for crossing : A hunter wishes to cross a river that is 1.9 km wide and flows with a speed of 5.0 km/h parallel to its banks. What is the minimum time necessary for crossing
What was its speed at the end of the fist : A model rocket flies upward at constant acceleration, and undergoes a displacement of 15.0 m during its first 0.25s of travel. What was its speed at the end of the fist
How tall is the lamp image : A lamp which is 11.0 cm tall is in front of a concave mirror which has a focal length of 51.5 cm. How tall is the lamp's image

Reviews

Write a Review

Microeconomics Questions & Answers

  What is the supply curve of an individual firm

Consider a competitive industry with a large number of firms, all of which have identical cost functions c(y)=y2+1 for y>0 and c(0)=0. Suppose that initially the demand curve for this industry is by D(p)=52-p.

  Describe the changes in supply and demand creating the

supply and demand are foundational concepts in understanding economic theory. whether you are a coffee drinker or not

  Describe why monopolist like media cable faces

suppose that media cable is a single-price monopolist in the market for cable in anywhere iowa. media has five

  Ethical perspective speaks directly to values of workers

His ethical perspective speaks directly to values of workers and values of organizations.

  Consider a perfectly competitive market in long-run

consider a perfectly competitive market in long-run equilibrium where all firms operate under the same cost conditions.

  Explain why firms short run production has rational stage

Using the information from the completed table and the graph to identify the three stages of production and explain why the firm's short run production has only one 'rational' stage of production

  Estimate the performance and importance of each partys

the republican and democratic national conventions have concluded. evaluate the performance and significance of each

  Consider the production possibilities curve

Consider the production possibilities curve (ppc) for a country producing only chesse and wine. The first few resources transferred from cheese to wine productions are:

  Identifying effective novel reward behaviors

Discuss and explain how coaching rather than managing people can enhance a leader's understanding of RQ and therefore provide a better understanding of their followers.

  1what do you understand by the following terms explain

1.what do you understand by the following terms? explain using formulae diagrams and examples. what are the

  Discuss if the entrant is better off with or without ability

Consider now that the entrant, if fought, has the possibility of withdrawin from the industry (at a loss of 1 for the entrant and a gain of 8 for the incumbent), or staying (at a loss of 5 for each player).

  Why might the favorable change in economy like

why might a favorable change in the economy such as technological improvement or a decrease in the price of imported

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd