Show, using a demand and supply diagram, what will happen to the wages of scientists and engineers if there is an increase in immigration of scientists and engineers from other countries.
What will be an ideal response?
As immigration of scientists and engineers increases, the supply curve for scientists and engineers shifts to the right, reducing the equilibrium wage. Refer to Figure 15.1 as a sample demand and supply diagram.
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Provide a concise statement on the relationship between the debt crisis and:
(a) foreign direct investment, (b) trade liberalization, (c) absolute poverty, and (d) investment levels.
If the federal funds rate is __________ the equilibrium interest rate, banks would try to __________ in the federal funds market
A) above; borrow B) below; lend C) below; borrow D) None of the above.
If the MPC equals 0.75, a $100 billion transfer payment decrease will decrease consumption in the first round by
A. $400 billion. B. $75 billion. C. $100 billion. D. $25 billion.
If the long-run supply curve slopes downward, we know that this is
A) a decreasing-cost industry. B) a constant-cost industry. C) an increasing-cost industry. D) a situation in which no input prices change as firms enter and exit the industry.