Exam 5: Movement of Labor and Capital Between Countries

Immigrants into the United States have the strongest effect on the wages of:

Evidence in the text indicates that the long-run effects of immigration on overall U.S. wages remain nearly constant (0.1%), which is consistent with the long-run (Heckscher-Ohlin) model. However, there are differing effects across workers' educational levels. What are these differing effects and why might they occur?

When the supply of labor increases, according to the specific-factors model, which of the following is likely to happen?

Consider an economy that only produces steel and shoes; steel is capital intensive and shoes are labor intensive. How will emigration of labor from this economy affect the marginal productivity of labor in the long run?

In the long run (the Heckscher-Ohlin model), immigration will lead to:

U.S. immigrants from Mexico are mainly _________workers and U.S. immigrants from India are mainly ___________workers.

During the 1960s and 1970s, some northern European countries actively recruited migrants mainly from Turkey, the former Yugoslavia, Greece, and Italy. In contrast, today most migrants to Europe come from:

Proposed European immigration policies are best described as trying to place immigrants:

In the Heckscher-Ohlin model with two goods and two factors, an increase in one factor will cause:

The text estimates that the long-run effect of migration from 1996-2006 on wages of all U.S. workers was, on average:

Because immigration raises the marginal products of nonlabor factors of production, in the short-run owners of nonlabor resources often support:

Of the 11% of the U.S. work force with advanced degrees, those who are foreign born make up:

In the short-run (specific-factors) model, an FDI inflow into a country's manufacturing sector will cause its production possibility frontier:

Which of the following would one expect if there were no trade in goods but resources were free to move among countries?

Consider a hypothetical economy in which only computers and shoes are produced and in which computer production is capital intensive compared with shoe production. If two resources are being used, labor and capital, then any increase in immigration in the long run:

In the Heckscher-Ohlin model with two goods and two factors, an increase in either factor will be absorbed by the economy, changing the outputs of each good but leaving factor prices unaffected. What is the name of this result?

The text cites estimates of the long-run effect of migration on wages of all foreign-born workers in the United States that range between:

Suppose that FDI has "spillover" benefits for the recipient nation (such as spurring technological innovation, more FDI, or growth in labor productivity). These spillover effects might help explain why:

Does the European Union allow migration among its member countries?

In the long run, which of the following explains why there are no changes to returns to capital and wages when FDI or labor immigration occurs?