Economics 19th Edition by Stanley Brue, Cambell McConnell, Campbell McConnell, Sean Masaki Flynn, Sean Flynn

Exercise 1

Mexico has daily (rather than hourly) minimum wage laws. In 2010, the daily minimum wage in Mexico was about 60 pesos per day, and the exchange rate between Mexican pesos and U.S. dollars was about 12 pesos per dollar.
a. In 2010, what was the Mexican minimum daily wage in terms of dollars
b. Given that Mexican employees typically work 8-hour days, about how much per hour is the Mexican minimum wage in terms of dollars
c. In 2010, the Federal minimum wage in the United States was $7.25 per hour. How many times larger was the hourly U.S. Federal minimum wage than the hourly Mexican minimum wage
d. If unskilled workers have a tendency to migrate to where they can obtain the highest compensation for their labor, which country is more likely to be receivingimmigrants