Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

6. Using the numerical example in problem 5, assume now that Foreign limits immi

ID: 1183904 • Letter: 6

Question

6. Using the numerical example in problem 5, assume now that Foreign limits immigra- tion so that only 2 workers can move there from Home. Calculate how the movement of these two workers affects the income of five different groups: a. Workers who were originally in Foreign ' b. Foreign landowners c. Workers who stay in Home d. Home landowners e. The workers who do move 7. Studies of the effects of immigration into the United States from Mexico tend to find that the big winners are the immigrants themselves. Explain this result in terms of the example in the question above. How might things change if the border were open, with no restrictions on immigration?

Explanation / Answer

a) they need to compete for the same two jobs b) foreign landowners get cheaper labour c) they have two jobs more d) labor becomes expensive e) the workers who move need to find jobs. they get more opportunities