Category: Economics

Initially, there are 6 workers in the origin country and 4 workers in the destination country. Assume thatlabor supply is perfectly inelastic in both countries (that is, that labor supply can be represented through a vertical line).
Consider first the case in which individuals are not able to change their country of residence.What would be the equilibrium wage in the destination and in the origin countries?
Consider next the case in which workers can freely migrate across countries (at no cost).What would be the equilibrium wage in the destination and in the origin countries? Howmany workers (if any) would migrate from the origin to the destination country?The government in the destination country is worried about the potentially negative effects ofimmigration on the labor market. To address this issue, the government is considering the introduction ofa

Monetary Policy in Mokania
Mokania has had inflation of 15% for many years. Molania establisbes a new central bank, the Bank of Mokania, with the hopes of reducing the inflation rate. Refer to Monetary Policy in Mokania. The Bank of Molana publicines that it iatends to reduce the inflation rate to 5%. If it actually reduces inflation to 3% and people were expecting inflation to fall only to 8%, then
unemployment falls but it would have fallen by less if the Rusk of Molana lad reduced inflation to 5% rather than 3%.
unemployment rises but it would have risen by more if the Busk of Molania had reduced inflation to 5% rather than 3%.
usemployment rises but it would lave risen by less if the Resk ef Mokanis had reduced inflation to 5% rather than 3%.
unemployment falls but it would have falles by more if the Busk of Mokueia lad reduced inflation to 5% rather than 3%.

Question 2 (13 points)Suppose that a Chinese solar panel manufacturer has an upward sloping marginal cost function given by MC=10Q where Q is the total number of solar panels produced by this firm. Denote the number of panels sold in the Chinese market by QH and the number of panels sold in the US market by QF. The firm faces a downward sloping demand curve in the Chinese market given by PH=750-5QH. It faces a horizontal demand curve in the US market at a price of 500 . That is, it can sell any number of panels in the US market at that price.
a) (4 points) How many panels will the firm sell in each market?
b) ( 2 points) What is the profit maximizing price of the panels it charges in the Chinese market?
c) (3 points) Is the price in the Chinese market higher or lower than in the US market? Will this qualify as dumping?
d) (4 points) Show the results diagrammatically.

d) [4 points] On this same set of axes, draw two representative indifference curves for both individual A and individual B, showing one indifference curve for each lying tangent to their respective time constraint. Recall that A’s wage is twice B’s wage: wA=2wu**. Are individual A’s total earning less than, equal to, or more than twice as much as individual B’s total earnings? Recall that total earnings are the wage times work hours.
e) [2 points] Explain briefly why your answer to Exercise 13(a) may change if you found out that individual A had to spend ten times as many hours on homework during her schooling years as individual B did. (Assume that time spent on homework only achieves education and does nothing else.)
f) [2 points] Explain why it is optimal for individual B to investless in health when she is already less healthy than A . Why does she not invest more to

Each of the scenarios will result in either a shift in the supply curve for labour or a change in the quantity of laboer sapplied. For each scenario, please indicate whether the change will affect supply or quantity supplied and in which direction the change will occur.
a.
Hot springs are discovered outside of Golden, Colorado, leading to the construction of several new ski resorts. These resorts offer many personalized services and require a large staff to meet customer needs. The increase in ski resorts leads to a(n) ◻ in the ◻
b.
The federal government adopts a new visa policy for guest workers seeking jobs in the United States. As a resalt, 30% more work visas are granted than before, a change expected to be permanent. The increase ia the mater of visas leads to a(n) ◻ in the ◻
c.
Health expert Richardo Simmonetz popularizes a new diet that requires people to cat only fried chidien for six

PS # 8 Q1.
A firm is considering purchasing an asset of $12,000 with $7,000 of this amount coming from equity and remaining being borrowed for 3 years at an effective interest rate of 12% per year. Uniform annual payments, consisting of interest and loan principals, will be utilized to repay the $5,000 loan. Straight-line depreciation over a 3-year period can be claimed, the asset’s salvage value at this time is expected to be $3,000, and 10% investment tax credit is taken. Before-tax income from the asset is estimated to be $5,000 per year. The firm’s effective income tax rate is 50%. Inflation and revaluation rates are forecasted to be 20% and 10%, respectively. If real after-tax MARR = 10%, develop a current ATCF analysis and decide whether this investment is profitable.