Question

Assume in two-country framework (country P and country Q), labor allowed to move across countries without...

Assume in two-country framework (country P and country Q), labor allowed to move across countries without any barrier. Suppose the wage rate in country P is higher than the wage rate in country Q. Based on between-country labor movements model, what is your prediction concerning the pattern of movement of labor between the two countries? Using the appropriate diagram, analyses the effect of the labor movement on total output, income for country P and country Q, and welfare for capital owners and labor owners in both countries. What happen to the per capita income for country P and country Q. Please answer in detail.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Kindly support for my answer please ?

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Assume that two countries, Country A and Country B, have an equilibrium exchange rate of 4...
Assume that two countries, Country A and Country B, have an equilibrium exchange rate of 4 "A dollars" = 1 "B dollars". Country B then begins to experience a relatively faster growth of income. Assuming a floating exchange rate, predict what will happen in the foreign exchange market between these two countries currencies - which will appreciate and which will depreciate? If on the other hand Country B wished to keep their exchange rate unchanged (fixed), what might they attempt...
2. Consider two neighboring countries that are currently completely isolated from each other. Also, Country B’s...
2. Consider two neighboring countries that are currently completely isolated from each other. Also, Country B’s households are much more sophisticated compared to those in Country A and they have a consumption function that depends on the (real) interest rate in addition to disposable income: Country A: Y = 12000 C = 2000 + 0.9(Y-T) I = 1500 – 100r G = 1500 T=2000 Country B: Y=8000 C = 1000 + 0.8(Y-T) – 400r I = 1000 – 200r G...
2. Consider two neighboring countries that are currently completely isolated from each other. Also, Country B’s...
2. Consider two neighboring countries that are currently completely isolated from each other. Also, Country B’s households are much more sophisticated compared to those in Country A and they have a consumption function that depends on the (real) interest rate in addition to disposable income: Country A: Y = 12000 C = 2000 + 0.9(Y-T) I = 1500 – 100r G = 1500 T=2000 Country B: Y=8000 C = 1000 + 0.8(Y-T) – 400r I = 1000 – 200r G...
Consider two neighboring countries that are currently completely isolated from each other. Also, Country B’s households...
Consider two neighboring countries that are currently completely isolated from each other. Also, Country B’s households are much more sophisticated compared to those in Country A and they have a consumption function that depends on the (real) interest rate in addition to disposable income: Country A: Y = 12000 C = 2000 + 0.9(Y-T) I = 1500 – 100r G = 1500 T=2000 Country B: Y=8000 C = 1000 + 0.8(Y-T) – 400r I = 1000 – 200r G =...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT