Various levels of output for employment: a. Calculate the MPPL schedule b. Calculate the marginal physical product of labor (MPPL) and marginal cost of labor (MRCL) with a fixed wage of $5 per hour. c. Assuming capital is constant, with 3 machines and MPPK/MRCK = 30, what is the least cost input combo of labor and capital?
#1 The US is one of the wealthiest nations on earth, yet our fundamental economic problem is scarcity. How can this be? Also, what are the broadest and narrowest measures of money and how are they used? #2 Contrast and discuss capitalism's and socialism's solutions to the three economic problems (what, how & for whom to
1. There are two separate reports for the USA. File contains reports generated from the AMA (American Marketing Association) website. This file contains four reports: General Summary, Census Trend 1980 to 2000 Summary, Occupation and Employment Summary, and Income Summary based on the entire U.S. Attached as excel spreadshe
Company CW is coming out with a new snack food. The Regional Manager is interested in some American Marketing Association reports on demographics. The files contain the following reports: General Summary, Census Trend 12980 to 2000 Sugary, Occupation and Employment Summary and Income Summary. In these demographics reports th
8. (Opportunity Cost and Economic Rent) Define economic rent. In the graph below, assume that the market demand curve for labor is initially D1. a. What are the equilibrium wage rate and level of employment? What is the amount of economic rent? b. Next assume that the price of a substitute resource increases, othe
1. Briefly explain the reasons why the following transactions would or would not be included in GNP. a. The members of the Legislative assembly vote for an immediate decrease in their salaries. b. A sports card dealer sells Bobby Orr rookie card for $500. c. You sell your old refrigerator to another person. d. An earthqu
These problems deal with analyzing learning curves, cost and production function, and incremental costs. See attached file for full problem description. 8.1 Cost and Production Functions. The total product curve shown here describes a production system in which X is the only variable input. Answer the following question
1. (4 marks) Explain the impact of an increase in the government expenditure on the economy (1) under conditions of classical aggregate supply and (2) under conditions of Keynesian aggregate supply. 2. (3 marks) In a closed economy, the consumption function is : C = 1.15 + .75 ( Y - T). The tax function is: T = 0.1Y +
In 1996 Congress raised the minimum wage from $4.25 to $5.15 per hour. Some people suggested that a government subsidy could help employers finance the higher wage. This exercise examines the economics of a minimum wage and wage subsidies IN A MAKE-BELIEVE COUNTRY. Suppose the supply of low skilled labor is given by LABOR SU
Who has the responsibility to reduce or eliminate unemployment? What is the role of business? What is the role of government?
Determine whether each of the following, other things held constant, would lead to an increase, a decrease, or no change in long-run aggregate supply: a. An improvement in technology b. A permanent decrease in the size of the capital stock c. An increase in the actual price level d. An increase in the expected price le
Techland and Clothworld are two countries with the same number of workers. In Techland each worker can produce 4 units of technology OR 4 units of clothing. Each resident in Techland currently consumes 2 units of technology and 2 units of clothing. In Clothworld each worker can produce 3 units of technology OR 12 units of clo
Throughout the 1990s, Western Europe experienced high rates of unemployment, while in the United States, the rate of unemployment remained far below the natural rate. Use the insights of the classical and Keynesian views of wages and unemployment to explain the differences in unemployment rates between the United States and West
Two sources of inflation, and how a decrease in aggregate demand results in a lower level of employment, given a fixed aggregate supply. How investment spending leads to a rise in consumer spending. The distinction between long and short run supply curves.
Explain why a decrease in aggregate demand results in a lower level of employment, given a fixed aggregate supply. Distinguish between two sources of inflation. Explain why steady inflation is likely to be less harmful to an economy than a situation which inflation rates vary alot. "A rise in planned investment spending in
Supply/demand analysis, pollution permits, labor force participation, and US trade deficit questions
5: The Bureau of Labor Statistics reported that in December 2002, the total labor force was 142,542,000 of a possible 214,967,000 working-age adults. The total number of unemployed people was 8,590,000. From this information, explain how to calculate the following and calculate the rates for December 2002: 5a: Labor force pa
You are the adviser to a Benevolent Social Planner. GDP is falling and the economy is in a recession. Recommend a policy and why you chose it (explain the benefits and any potential criticisms of your choice). You may assume what ever policies are already in place (but you must state what these policies are). A good answer w
1. If there were no tax benefits and behavior is governed by rational self interest, would people give to charitable institutions? use economic principles to explain. 2. What good is economic theory if it cannot predict an individual's behavior? give examples of the use of economic theory. 3. In a response to an increase i
Research and define the terms below and summarize how each relates to health care. I have the definitions but i am unsure how they relate to health care. Students should research the definitions of the following economic terms: economics, supply, demand, macroeconomics, microeconomics, elasticity, inelasticity, and gross nat
How can federal government spending crowd out private sector investment and consumption? Does the exent of crowding out depend on whether or not government spending is financed by taxes, selling Treasury securities to the public or printing money? Does it make a difference whether or not the economy is at full employment or in a
1. C = 500 + 0.75Y, I = 1,000,G = 1,600, X = 300, M = 400. Calculate the equilibrium values of C and S. Is there any evidence of "crowding out"? Explain. According to Okun's Law, what is the current unemployment rate, if the natural rate of unemployment = 7% and full-employment GDP = 12,766? SHOW ALL WORK CLEARLY
QUESTIONS: 1) Explain and show graphically how each of the following changes would affect the shape of the AD curve: . 1) Taxes are reduced 2) Nominal money supply increases 3) The Government uses an expansionary fiscal policy 4) Entrepreneurs become more bullish 5) Foreigners develop
Discuss the advantages and disadvantages of a common currency(the Euro for example).
1. Suppose that the economy is currently in a recession. If policy-makers take no action, how will the economy evolve over time? Explain in words and using an aggregate-demand/ aggregate-supply diagram. 2. Suppose that the economy is undergoing a recession because of a fall in aggregate demand. 3. a. Using an aggregate
If there was a mandate that firms had to pay all workers' health insurance, regardless of their time with the company, what would happen to general and specific training in labor markets?
9. Suppose the U.S. government is considering changes in economic and social policy to reduce wage inequality. Evaluate whether the following will help: (a) Decrease the benefit level to welfare recipients. (b) Increase the benefit level paid to welfare recipients. (c) Provide wage subsidies to firms that hire the less-ad
9. The manager of a firm receives an engineering report claiming that an additional hour of capital would add twice as much output as would an additional hour of labor. According to the firm's accountants, an hour of capital costs 3 times more than an hour of labor. a. Is the firm on its expansion path? Why or why not? b. Su
The following figure shows the demand and supply of low skilled labor. (see attached file) The marginal productivity of a high-skilled worker is $8.00 and hour greater than that of a low skilled worker. (The marginal product at each employment level is $8.00 greater than that of a low-skilled worker.) The cost of acquiri
Consider the following assertion: We all benefit by having physicians available in case we need them. Therefore, the government should subsidize medical education. Critique this justification of government subsidies based on an externalities argument.
Suppose that there are two states (A and B) in a country. Workers can freely move from one state to the other and all labor is equally skilled. a) Depict graphically the two market equilibrium, clearly labeling the wage (use WA and WB) and employment that clears each market. b) If a country-wide minimum wage (WM) is set in
The following article appeared on the front page of the Wall St Journal on April 17, 1998: The public, by 79% to 17%, favors raising the minimum hourly wage by $1 to $6.15. But Princeton economist Alan Krueger, whose research helped win a rise in 1996, is "less confident" another boost so soon " will have as benign consequen