Exam 5: Movement of Labor and Capital Between Countries

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In spring 2010, an explosion on an offshore oil­drilling rig caused 11 deaths and a major oil spill in the Gulf of Mexico.Shortly thereafter, the U.S.government declared a moratorium on oil drilling in U.S.territorial waters in the Gulf of Mexico and a re­examination of offshore drilling regulations.What were the expected short­ and long­run effects of these actions on labor in Gulf coastal states?

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Does the European Union allow migration among its member countries?

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Suppose labor and capital are the only two resources Used for production.In the long run:

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Foreign­born workers in the United States tend to:

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When Irish immigrants first came to the United States, they were widely discriminated against.A century after a wave of Irish immigration, however, Americans generally look favorably on Irish heritage.How can our models explain this?

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Which group of U.S.citizens competes with illegal Immigrants in the United States?

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What is the long­run effect of immigration on capital Use in the receiving country?

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In which U.S.educational categories were foreign­ born workers MOST highly concentrated in 2010?

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The specific­factors model can also apply to recent Immigration into the United States.There are two Major categories of U.S.immigrants:

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In destination countries, as immigration occurs and More labor is employed, in the short run, wages fall And the marginal products of land and capital (fixed Resources):

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Between 1870 and 1913, labor migration from the "Old World" (Europe) to the "New World" (the United States, Canada, and Australia):

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In the specific­factors model, how will immigration Affect the sending country's production possibilities Frontier?

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In the short­run (specific­factors) model, foreign direct Investment is expected to cause a(n) ________ in the Production of the capital­intensive good and a(n) ________ in the production of the land­intensive good In the receiving country.

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According to the short­run (specific­factors) model, How will FDI affect wages in the recipient nation?

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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.

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In the short run, immigration lowers wages in both sectors because of what feature of production?

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Skill­biased technological changes:

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In the short­run (specific­factors) model, foreign direct Investment is expected to cause a(n) ________ in the Return to capital and a(n) ________ in the return to Land in the receiving country.

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The H1­B visa program is designed:

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In the specific­factors model, migration of labor will Cause:

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