Economic Principles: Labor Mobility and Market Interactions

Study Preparation for Supply and Demand

• Complexity: Supply and demand concepts can be challenging, especially for new students.
• Effective Study Method: Create a single, landscape-oriented piece of paper listing key principles and their implications.
• Key Principles and Elasticity's Role:
  • When demand increases, the elasticity of supply is crucial.
  • When supply increases, the elasticity of demand is crucial.
  • For government interventions (taxes, subsidies, ceilings, floors, quotas, imports, exports), the elasticity of both demand and supply determines outcomes like incidence and revenue.

Labor Mobility: Policies and Economic Impacts

The Obama Administration's International Student Policy

• Historical Context: Prior to Obama's presidency, it was very difficult for international students to remain in the U.S. after graduation, often forcing them to return home.
• Previous Exploitation: International graduates who secured employment were vulnerable to exploitation, receiving low wages, as leaving their employer meant leaving the country. This situation was compared to