Exam 5: Movement of Labor and Capital Between Countries

In the short run, as immigration occurs and more labor is employed, what will happen to the marginal products of land and capital (fixed resources) in the destination country?

In the long run, immigration will shift the sending country's production possibilities frontier inward. This shift will cause:

According to the short-run (specific-factors) model, how will FDI affect wages in the recipient nation?

Without productivity growth, what is the long-run effect of labor migration on the receiving country?

Because most immigrants into the United States are either highly skilled or unskilled, the majority of workers:

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

In an economy with two industries, what are the long-run effects of increased immigration upon employment in each industry?

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 production?

The short-run model that allows labor to move between industries while keeping other factors fixed is called the ____________ model.

One example of emigration from Europe was during the period between 1870 and 1913. Wages grew rather than declined in the destination nations of the United States, Canada, and Australia. Why?

Which of the following statements describes the short-run effect(s) of labor immigration?

Measuring the effects of labor migration shows:

Large numbers of Pakistani, Indian, Bangladeshi, and Philippine labor are working (mainly in low skilled jobs) in Arabian Peninsula countries (e.g., Qatar, Saudi Arabia, United Arab Emirates). Suppose that you are an Indian worker who could earn $1,000 annually at home and $3,000 in Saudi Arabia. I. Compare the productivity of this worker at home and in Saudi Arabia. II. Why might these productivities differ? III. Often, a broker arranges visas for foreigners to work in Saudi Arabia. What is the maximum amount that an Indian worker might be willing to pay a broker to arrange a work visa for Saudi Arabia?

In the specific-factors model, immigration causes:

The H1-B visa program is designed:

Illegal immigrants into the United States tend to compete mainly with:

Which of the following BEST describes the short-run effects of FDI inflows to Singapore during the latter part of the twentieth century?

Consider a hypothetical economy in which only computers and shoes are produced and in which computer production is capital intensive and shoe production is labor intensive. If two resources are being used, labor and capital, then the capital-labor ratio would be:

Ottaviano and Peri estimated that the long-run effect of migration on wages of all U.S. workers ranged between:

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