International Economics 14th Edition by Robert Carbaugh

تمرين 1

Table 9.9 illustrates the hypothetical demand and supply schedules of labor in the United States. Assume that labor and capital are the only two factors of production. On graph paper, plot these schedules.
a. Without immigration, suppose the labor force in the United States is denoted by schedule S0. The equilibrium wage rate is $___ ; payments to native U.S. workers total $___ , while payments to U.S. capital owners equal $___.
b. Suppose immigration from Hong Kong results in an overall increase in the U.S. labor force to S1. Wages would rise/fall to $____ , payments to native U.S. workers would total $____ , and payments to Hong Kong immigrants would total $____. U.S. owners of capital would receive payments of $ ___.
c. Which U.S. factor of production would gain from expanded immigration? Which U.S. factor of production would likely resist policies permitting Hong Kong workers to freely migrate to the United States.