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Question: Further, Growers who can afford it have already begun raising worker pay well beyond minimum wage. But the raises and new perks have not tempted native-born Americans to leave their day jobs for the fields. Nine in 10 agriculture workers in California are still foreign born. Instead, companies growing high-value crops, like Cabernet Sauvignon grapes in Napa, are luring employees from fields in places like Stockton that produce cheaper wine grapes or less profitable fruits and vegetables.
(a) Demonstrate and explain why native-born Americans have responded to the increasing wage rate by working fewer hours in the field. Be sure to consider all possible effects of the wage increase.
(b) What does the difference between your answers to (a) and (b) depend on? How does this explain the difference in behavior? Explain.
Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.
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"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"
Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"
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