Could a labor union or a minimum wage law efficiently help to raise wages, increase employment, or improve working conditions in a firm that is: a) a perfectly competitive firm in both the product market and the resource market? Explain. b) an imperfectly competitive firm in both the product market and resource market? Expl
Suppose an employer offers a base wage of $20 per hour for the first forty hours of a work each week and overtime pay of $30 per hour for any hours beyond forty per week; the employer allows workers to choose their own hours of work. Suppose employee A chooses to work thirty-six hours per week and employee B chooses to work for
Find three current articles about the economy on http://www.economist.com. Write a response identifying at least one of the ten principles of economics for each article.
Because credit card companies and banks must charge the same interest rate on credit cards to all borrowers, there is an adverse selection problem with credit cards. How does a credit card company or firm know whether a person will be a high-quality borrower (i.e., one who pays the debts) or a lower-quality borrower (i.e., one
Research monetary and fiscal policies that have affected the housing industry. Find two sources to help you answer the following questions about the housing industry: o How have these policies affected the employment rates for the housing industry? How have these policies affected the growth of the industry? How have these p
Why is GDP a poor measure of wealth distribution? Could the socio-demographic factors be an answer? What does wealth distribution means.
Economic Policy - Global Environment. See attached file for full problem description.
According to economist Albert Rees, there is evidence that agreements sometimes exist "among employers not to raise wages individually or not to hire away each other's employees...Except in the unusual case of professional sports, however, these agreements must be very difficult to enforce. Analyze the effects on wages and em
Competitive Market Equilibrium. Suppose demand and supply conditions in the competitive market for unskilled labor are as follows: Qd=66.25-5P (demand) Qs=-27.5+10P (supply) where Q is millions of hours of unskilled labor and P is the wage rate per hour. Calculate the industry equilib
People of many different age groups and circumstances take advantage of part-time employment opportunities provided by the fast food industry. Given the wide variety of different fast-food vendors, the industry is fiercely competitive, as is the unskilled labor market. In each of the following circumstances, indicate whether t
How does the economy affect the housing industry? What economic influences affect the housing industry in a negative way?
These are a few review questions that have stumped me. Can anyone assist. Thanks! If the seller knows more about the good than the buyer, there exists: a. an externality. b. asymmetric information. c. moral hazard. d. a public goods problem If the market for used computers has only lemons (low-quality c
IT REQUIRES ALGEBRA. 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 lab
Theoretically, the President of the United States is suggesting increased spending for a missile defense system. He is also proposing a major long-term tax cut. What are some predictions of possible outcomes for the federal budget categories, the economy and the relative importance of each outcome during the next 10 years.
Theoretically, the President of the United States is suggesting increased spending for a missile defense system. He is also proposing a major long-term tax cut. What are some predictions of possible outcomes for the federal budget categories, the economy and the relative importance of each outcome during the next 10 years.
Using Human Capital theory (Becker, others), explain the relationship between skill and unemployment. Naturally, economists and the public at large usually think of skill-level having having an inverse relationship with unemployment. But you should be able to describe why this is, put it into terms of Human Capital, and perha
True or False (explain): 1. Imagine an economy where velocity is constant. The money supply is growing by 10% per year, while the growth rate of real GDP is 5% per year. The nominal rate of interest is 8%. The real interest rate must be 4%. 2. Unanticipated deflation redistributes income and wealth from borrowers to l
During the deflationary Great Depression Keynes advanced the idea of a "liquidity trap." Please explain the liquidity trap is presently stopping the Japanese economy from recovering.
See the attached file. 1. Given that Y=900 and desired consumption and investment are given by: Fill in as many entries as you need to answer the questions. Assume that this is a closed economy (NX=0). R C I G S C+I+G 0 925 80 15 0.01 900 75 15 0.02 875 70 15 0.03 850 65 15 0.04 825 60 15 0.05 800 55 15
Download the simplest version of the model, FinanceministerBasic.exe. Just click on the link (run the file rather than saving it) and it will prompt you to install the model to your PC. There is another version of this same model, FinanceministerDynaMo.exe. The only difference (which may be important from you view of matters
Is the following statement true or false and why?: "A monopolist can not hire fewer workers and pay a lower wage than a firm in a competitive labor market".
1. The members of the Board of Governors are appointed by A) the president. C) the Federal Reserve district banks. B) Congress. D) the member banks. 2. Intermediate products are A) goods that are purchased by the government. B) goods that are transferred to the states. C) products produced by the federal
1. Graph the US capital-labor ratio since 1948 (use thee sum of private equipment capital and private structures capital as the measure of capital, and civilian employment as the measure of labor). Do you see evidence of convergence to a steady state during the postwar period? Now graph output per worker for the same period.
1. Output, total hours worked, and average labor productivity all are procyclical. a) Which variable, output, or total hours worked, increases by a large percentage in expansions and falls by a larger percentage in recessions? (Hint: Average labor productivity = output / total hours worked, so that the percentage change in
In each of the following scenarios, predict what will happen to: 1) Employment, 2) real wages, 3) output, 4) the interest rate, and 5) the price level 1) There is a sudden decrease in consumption due to a decline in consumer confidence. 2) There is an increase in productivity (in the sense that each worker can now produce
1. Desired consumption and investment are C^d = 4000 - 4000r +0.20 Y; I^d = 2400 - 4000r. As usual, Y is output and r is the real interest rate. Government purchases, G, are 2000. a) Find an equation relating desired national saving, S^d, to r and Y. b) What value of the real interest rate clears the goods market
If the government increased its expenditures and reduced taxes, how would this policy affect the real output and the price level in the short run if the economy is: 1. experiencing 20% unemployment rate 2. experiencing mild recession 3. at the real output level
1. Contrast the structural-change and managerial-opposition hypothesis as they relate to the decline in unionism. Which view do you think is more convincing? 2. Explain the logic of each of the following statements: a. By constraining the decisions of management, unions reduce efficiency and productivity growth. b. As co
1. A consumer lives three periods, called the learning period, the working period, and the retirement period. Her income is 200 during the learning period, 800 during the working period, and 200 again during the retirement period. The consumer's initial assets are 300. The real interest rate is zero. The consumer desires pe
1. Consider an economy that initially has a labor force of 2000 workers. Of these workers, 1900 are employed and each works 40 hours per week. Ten units of output are produced by each hour of labor. a. What is the total number of hours worked per week in the economy? What is the total output per week in the economy? Wha