Question

Create a real or hypothetical question that could be addressed with positive analysis regarding a microeconomics issue that affects your household or your firm.

An example of a microeconomics question that could be addressed with positive analysis is:

“How would an increase in the Federal minimum wage to $12/hour increase impact the cost of childcare in the US?”

I need to create a question of my own please use the example as reference. Thank you

Answer 1

One important issue for the US economy is the labor market. A lot of firms in the US depend on skilled workers from other countries. Every year, this is an important political and economic decision. The decision can be stated as a positive microeconomic question, which can be analyzed using the tools of economics.

"What will be the impact on the unemployment rate in USA, if the annual number of H1B visas is increased from 85,000 to 100,000?"

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Here as an assumption, USA initially allows 85,000 visas every year. It is being considered that this number should be raised to 100,000. However, economists are wondering whether this will raise the unemployment rate within the USA, as now US citizens will face competition from immigrants. This can be estimated using a descriptive analysis of the labor market, taking one sector at a time.

answered by: anonymous