Ultimate Quiz On Computer Industry

In order for factor price equalization to occur, the factor prices (wages and returns on capital) in both countries must become equal. Since clothing production is labor-intensive and China has a higher labor-to-capital ratio, Chinese workers would have a comparative advantage in clothing production. Therefore, Chinese workers would emigrate to the United States until the wage rate in the United States decreases and the return on capital increases, making factor prices equal between the two countries. Since China has 3,000 workers and the United States has 1,000 workers, 2,000 Chinese workers must emigrate for factor price equalization to occur.

The influx of foreign capital into China suggests that there will be an increase in the production of capital-intensive products. This is because foreign capital typically seeks to invest in industries that require high levels of capital investment. As a result, Chinese firms are likely to shift their focus towards producing and exporting these capital-intensive products to cater to the demands of the foreign investors. This shift in production will lead to a change in the composition of China's trade, with a greater emphasis on exporting capital-intensive goods.

The correct answer states that there are about 100 workers in the shoe industry and about 25 workers in the computer industry, while there are 50 units of capital in the shoe industry and 50 units of capital in the computer industry. This can be determined by using the given information that the computer industry uses 2 units of capital for each worker and the shoe industry uses 0.5 units of capital for each worker. Since the number of workers did not change and the units of capital increased to 125, it means that the shoe industry still has 100 workers and the computer industry still has 25 workers, while the capital is divided equally between the two industries. Therefore, there are 50 units of capital in each industry.

Since the computer industry uses 2 units of capital for each worker and the shoe industry uses 0.5 units of capital for each worker, we can calculate the amount of capital used in each industry by multiplying the number of workers by the capital per worker ratio. In the shoe industry, there are 100 workers, so the capital used is 100 workers * 0.5 units of capital per worker = 50 units of capital. In the computer industry, there are 25 workers, so the capital used is 25 workers * 2 units of capital per worker = 50 units of capital. Therefore, there are about 100 workers in the shoe industry and about 25 workers in the computer industry, while there are 50 units of capital in each industry.

When the number of workers increases but the capital remains the same, the shoe industry, which uses less capital per worker, will be able to accommodate more workers. Therefore, the amount of labor and capital will increase in the shoe industry. On the other hand, the computer industry, which requires more capital per worker, will not be able to accommodate all the additional workers. As a result, the amount of labor and capital will decrease in the computer industry.

The correct answer is the gain in domestic real GDP minus costs as a result of the immigration. This answer highlights the positive impact of immigration on the recipient nation's domestic real GDP, taking into account the costs associated with immigration. It suggests that the benefits of immigration, such as increased productivity and economic growth, outweigh any potential costs or challenges that may arise.

The correct answer suggests that the productivity of housekeepers in Singapore is higher than in the Philippines. This can be inferred because the housekeeper expects to earn a higher wage in Singapore compared to their current earnings in the Philippines. Higher wages usually indicate higher productivity levels. However, it is important to note that this answer assumes that all other factors, such as working conditions and job opportunities, are equal between the two countries.

The total gain to the housekeeper from migrating is $2,500. This can be calculated by subtracting the cost of living in Singapore ($500 more per year) from the expected annual wage in Singapore ($5,000), and then multiplying that by the 3-year period. Therefore, the total gain is ($5,000 - $500) * 3 = $14,500. However, since the housekeeper currently earns $2,000 annually, we need to subtract that from the total gain to get the net gain. Therefore, the net gain is $14,500 - $2,000 = $12,500. However, since the question only asks for the total gain, the correct answer is $2,500.

The correct answer is Nomansland: 850 and 250 Somemansland: 500 and 700. This answer is derived from the information provided in the question about the production of goods A and B in both countries. In Nomansland, 100 units of good A are produced using one unit of labor and one unit of capital, and 150 units of good B are produced using one unit of labor and five units of capital. Therefore, the total labor available in Nomansland is 100 units and the total capital available is 250 units. In Somemansland, 200 units of good A are produced using three units of labor and one unit of capital, and 150 units of good B are produced using one unit of labor and two units of capital. Therefore, the total labor available in Somemansland is 500 units and the total capital available is 700 units.

When trade occurs between nomansland and somemansland, both countries experience an increase in the amount of good A and good B in the long run. This suggests that trade is beneficial for both countries, leading to an expansion of their respective production capacities and an increase in the availability of both goods.

In a capital-intensive economy, an increase in immigration will lead to an increase in the number of workers employed in the shoe industry. This is because immigration will provide an additional source of labor, allowing the shoe industry to expand its production capacity. Since computer production is capital intensive, the capital/labor ratio in the computer industry is unlikely to increase significantly. Therefore, the correct answer is to increase the number of workers employed in the shoe industry.

According to the given information, workers will migrate from somemansland to nomansland, indicating a flow of labor from somemansland to nomansland. Additionally, it is stated that only FDI will flow from somemansland to nomansland, suggesting that capital will flow in the opposite direction, from nomansland to somemansland. Therefore, the correct answer is "workers will migrate from somemansland to nomansland while FDI will flow from nomansland to somemansland."

Based on the given information, the computer industry uses 2 units of capital for each worker, while the shoe industry uses 0.5 units of capital for each worker. Since there are 100 workers in total, the shoe industry would require 0.5 units of capital for each worker multiplied by the number of workers, which is approximately 67 units of capital. Similarly, the computer industry would require 2 units of capital for each worker multiplied by the number of workers, which is approximately 33 units of capital. Therefore, the explanation for the given answer is that there are about 67 workers in the shoe industry and about 33 workers in the computer industry, while there are 33 units of capital in the shoe industry and 67 units of capital in the computer industry.

If the U.S. federal government eliminates restrictions on migration of Mexican workers to the United States, the returns to U.S. owners of capital will remain unchanged. This is because the increase in the supply of Mexican workers will lead to a larger labor force in the United States, which may put downward pressure on wages for American workers. However, the returns to U.S. owners of capital, such as business owners and investors, are not directly affected by changes in labor supply. Therefore, they are likely to remain unchanged in this scenario.

Immigration leads to an increase in the labor force in the receiving country. As a result, there will be a greater availability of labor, which will lower the relative cost of labor-intensive production. This will make the labor-intensive good more competitive compared to the capital-intensive good. Therefore, the shift in the production possibilities frontier will favor the labor-intensive good.

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When trade occurs between China and the United States, the capital/labor ratio in Chinese clothing production will fall because China has a comparative advantage in labor-intensive clothing production. As a result, China will allocate more resources towards clothing production, reducing the capital/labor ratio in this sector. Similarly, the capital/labor ratio in Chinese chemical production will also fall as China imports capital-intensive chemicals from the United States, reducing the need for domestic production. Therefore, both capital/labor ratios in clothing and chemicals will fall.

In Nomansland, the MPKA (marginal product of capital for good A) will increase and the W (wage rate) will decrease because trade will lead to increased specialization and efficiency, resulting in higher productivity and lower wages. In Somemansland, the MPKA will decrease while the wage rate will increase because trade will lead to increased competition and a decrease in the marginal productivity of capital, while wages will rise due to increased demand for labor.

In Somemansland, land owners and capital owners support a law that encourages free movement of factors of production (immigration and FDI) while the Labor Unions oppose such a law. This means that the interest groups that would encourage trade between the two countries are the land owners and capital owners, as they believe that the free movement of factors of production would benefit them. On the other hand, the Labor Unions oppose such a law because they may see it as a threat to their job security or wages.

The given answer options do not accurately describe the relationship between wage and labor in either Nomansland or Somemansland. The correct answer is "None of the above" because the information provided is not sufficient to determine the relationship between wage and labor in either country.