In the standard Roy model, migration can lead to an increase in average skills in both locations. What is necessary for this to happen?
A. The workers who migrate from the source country are above-average in skill relative to the average source country person but are below-average in skill relative to the average destination country person.
B. The highest skilled workers migrate from the source country to the destination country.
C. The lowest skilled workers migrate from the source country to the destination country.
D. Migration leads to an increase in average skills in both locations whenever there is positive selection.
E. The workers who migrate from the source country are below-average in skill relative to the average source country person but are above-average in skill relative to the average destination country person.
Answer: E
You might also like to view...
Use the following diagrams to answer the next question.
Assume the economy is on aggregate demand AD1. The Fed should ________.
A. move from MS1 to MS3 to raise interest rate and raise investment B. move from MS1 to MS3 to raise interest rate and lower investment C. move from MS1 to MS2 to lower interest rate and lower investment D. move from MS1 to MS2 to lower interest rate and increase investment
Which of the following cannot be controlled precisely by the Federal Reserve?
A) Government securities held by the New York Federal Reserve B) The discount rate C) Reserve requirement ratios D) Total bank reserves
Restricting imports usually leads to
A) a country producing beyond its production possibilities frontier. B) a country consuming even further beyond its production possibilities frontier. C) a reduction in exports and employment. D) a higher per capita level of real consumption.
Which of the following is a possible advantage of a free market condition? a. In a free market, consumers are offered discounts on the purchase of products
b. In a free market, all goods and services are offered for free to households below the poverty line. c. In a free market, continuous government intervention helps keep the price of products under control. d. In a free market, competition among sellers helps the consumers purchase a product at the lowest possible price. e. In a free market, consumers have limited products to choose from, thereby assuring less confusion and better quality.