Q1. In signaling model, assume high school graduates are paid a stream of income whose present value is $200,000. College graduates are paid a stream of income whose present value is X. College education costs higher-productivity workers $50,000 and lower-productivity workers $150,000. What value of X will cause higher-productivity workers to go to college and lower-productivity workers to not go to college?
Q2. In this forum we discuss the different arguments that are made in favor of international trade protectionism and the important role of the "politics of protectionism". We have learned in previous chapters that trade protectionism "distorts" the benefits and costs to the nation.
Within the context of the following discuss the following:
The politics of production versus employment: How does this political argument continue to influence our national discussion on NAFTA (North American Free Trade Agreement)
Is the US solar industry an "infant industry" that requires protection from Chinese government subsidies?