Study Questions (with Answers) Lecture 10. Migration

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1 Stuy Questions (with Answers) Page 1 of 4 (5) Stuy Questions (with Answers) Lecture 10 Part 1: Multiple Choice Select the best answer of those given. 1. Which of the following reasons for people migrating from one country to another is the most important in toay s worl? a. Better living conitions b. Higher wages c. To escape persecution. For a better climate e. For religious freeom b (This answer was correct prior to the recent surge in refugees. That may have change the answer, but I on t have ata on that.) 2. Which of the following woul not, if it were true, contribute to hourly wages being lower in Mexico than in the Unite States? a. Mexico lacks much of the infrastructure of the U.S. b. Mexico has less capital per worker than the U.S. oes. c. Mexico s labor force is less eucate than the U.S. labor force.. Mexican workers prefer to work shorter hours than U.S. workers. e. Mexico s technology lags behin that of the U.S.

2 Stuy Questions (with Answers) Page 2 of 4 (5) 3. Compare to the beginning of the 20th century, immigration now into the Unite States as a fraction of our population is a. Much greater (more than ten times as large) b. Somewhat greater (between twice as large an ten times as large) c. About the same. Somewhat smaller (between one tenth as large an half as large) e. Much smaller (less than one tenth as large) (see Stelzer) 4. The NAFTA was expecte to reuce migration from Mexico into the Unite States because a. The NAFTA agreement inclue a provision for increase enforcement of migration restrictions at the borer. b. The NAFTA woul reuce the movement of vehicles across the borer in which illegal migrants coul hie. c. The NAFTA was expecte raise wages in Mexico, reucing the incentive for migration.. The NAFTA was expecte to reuce American wages below Mexican wages, causing migration to flow into Mexico instea of into the U.S. e. The NAFTA woul improve the air quality in Mexico, so that Mexicans woul not want to leave. c 5. Opponents of current U.S. immigration policy argue that a. Immigrants reuce wages of American unskille workers. b. Immigrants use social services that coul be reserve for non-immigrants. c. The taxes that immigrants pay in the U.S. are smaller than the benefits they get.. Immigrants shoul be restricte to those with high skills an high wealth. e. All of the above. e

3 Stuy Questions (with Answers) Page 3 of 4 (5) 6. When one author complains that balkanization has replace assimilation, he means that a. Toay s immigrants live in enclaves with others like themselves, instea of intermingling with the larger population. b. Toay s immigrants come increasingly from the Balkan countries, rather than from Asia. c. Immigrants take more from social services than they give back.. Restrictions on immigration are preventing qualifie workers from entering the Unite States an filling jobs that then go unfille. e. Immigrants are now being amitte from only a hanful of isolate places aroun the worl, in contrast to rawing from the whole worl as we use to o. a (see Elrege) 7. By evoting more resources to keeping illegal immigrants from crossing the U.S.- Mexico borer, the U.S. has cause a. Wages in Mexico to rise. b. Immigrants to be exploite by those who offer to help them cross the borer. c. Increase taxes to be collecte from legal immigrants in the U.S.. Increase illegal immigration. e. Working conitions in Mexico to improve. b (see Skerry an Rockwell) 8. Accoring to the assigne article from the Economist, Drain or Gain? which of the following is one of the effects of emigration from eveloping countries on the countries from which they emigrate? a. Crime goes own, as emigrants ten to be both perpetrators an victims of crime. b. Families of the emigrants rain their savings, sening financial support to the emigrants abroa. c. Prouctivity of migrants is lower when they return than when they left, as they ten to forget etails of their home culture.. Levels of eucation improve, as the possibility of emigration provies the incentive, even for those who on t ultimately move. e. Migrants who return are more likely to be unemploye than workers who chose not to emigrate.

4 Stuy Questions (with Answers) Page 4 of 4 (5) 9. Accoring to the assigne article by Donnan, The Numbers Game global migration as measure by the percent of people living outsie their country of birth a. Is much smaller than it use to be b. Is somewhat smaller than it use to be c. Has remaine about the same over many years. Is somewhat larger than it use to be e. Is much larger than it use to be c 10. How common is it for people to migrate from one eveloping country to another a. More common than migration from eveloping countries to evelope countries. b. Less common than migration from eveloping countries to evelope countries, but more common than migration between evelope countries. c. Less common than migration between evelope countries, but more common than migration from evelope countries to eveloping countries.. Less common than migration from evelope countries to eveloping countries, but more than migration from eveloping countries to evelope countries. e. It oesn t happen at all. b (See Economist, From south to south ) Part II: Short Answer Answer in the space provie. 1. Explain the ifference between eman pull an supply push factors that are involve in the etermination of international migration. Then ientify an explain the thir factor that is not inclue in either one of these. Deman pull factors are economic conitions in the receiving country. Supply push factors are economic conitions in the sening country. Not inclue in these two are the thir, social networks, which refers to linkages between people in both countries. See Gerber, Ch The graphs below show eman for labor in two countries, A an B, an several vertical labor supply curves. Use these iagrams to illustrate the effects of a migration from one country to the other in search of a higher wage. Let the amount of migration (change in labor supply) be equal to the (ientical) horizontal istance between the supply curves in both graphs.

5 Stuy Questions (with Answers) Page 5 of 4 (5) a. Ientify the equilibria that obtain in both countries, first before the migration takes place, an then after the migration takes place. In which country oes the wage rise ue to migration, an in which oes it fall? w A 0 L A L B! Since wages are lower in A than in B regarless of which labor supply curve you pick, it must be that labor migrates from A to B, an therefore that the labor supply curve shifts left in A an right in B. Thus the initial equilibria inclue the lower of the two wages shown in a, an the higher of the two wages in B, corresponing to the rightmost labor supply curve in A an the leftmost labor supply curve in B. The effect of the migration is therefore to raise the wage in A an lower it in B. a S A b c S A D A w B S B e f g h SB b. Use consumer an proucer surplus to measure the welfare effects on suppliers an emaners of labor in the two countries an use the labele areas to recor them below. Use plus an minus signs to inicate whether each group gains or loses. Workers who migrate: +(g+h) Workers who stay in A: +a Workers who stay in B: - Employers in A: -(a+b) Employers in B: +(+e) Country A exc. migrants: -b Country B exc. migrants: +e c. In this moel, oes worl welfare necessarily rise ue to this migration? Yes. Aing the effects on the two countries plus the migrants, the change in worl welfare is +(g+h+e)-b. But area h is ientical to (b+c). So this is +(g+c+e) which is necessarily positive.

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