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
Consider a country with no income maintenance program that enacts an Earned Income Tax Credit similar to the US. a) Among all working people, will this program lead to a reduction in hours worked? prove your answer either graphically or mathematically. state all assumptions. b) What are the expected effects on labor force
(See attached file for full problem description) --- 1. For each year shown in the table, calculate the following: real Gross Domestic Product and per capita real GDP. (specify whether your answer is in $dollars, millions, billions, etc.) (8 Marks) year nominal GDP ($billions) price level (GDP Deflator) population (mi
Describe an organization's staffing practices and selection tools in response to two of the following trends: Ethics & Technology Evaluate the effectiveness of these staffing practices and selection tools in meeting current and future employment needs of the organization.
In August 2002, preliminary data showed that payroll employment rose 39,000, household employment rose 429,000, and the unemployment rate fell from 5.9% to 5.7%. A. Based on these data, what conclusion would you reach about the current employment situation? B. How would your answer change if you also noted that (a) the un
Mr. Whammo has just invented a magic pill. Take it, and it transports you anywhere. Explain his inventions effect on the economy.
The Bureau of Labor Statistics reported that in January 2000 the total labor force was 140,910,000 of a possible 208,782,000 working-age adults. The total number of unemployed was 5,689,000. From this information, calculate the following: a. Labor force participation rate b. Unemployment rate c. Employment
How does a government budget surplus affect the economy? Is it good or bad for the economy?
How much is a Rupee to the US dollar? Do you know how much earnings Google reported to the (GAAP), both in rupees and in U.S DOLLARS?
1. Fiscal policy refers to the: A) manipulation of government spending and taxes to alter economic outcomes (i.e., stabilize domestic output, employment, and the price level). B) manipulation of government spending and taxes to achieve greater equality in the distribution of income. C) altering of the interest rate to
2a. If the economy currently has a frictional unemployment rate of 2 percent, structural unemployment of 2 percent, seasonal unemployment of 0.5 percent, and cyclical unemployment of 2 percent, what is the natural rate of unemployment? Where is the economy operating relative to its potential GDP? b. What happens to
1. Using your knowledge of marginal revenue product, explain the following: a. A star is paid $200,000 for appearing in a 30-second television commercial. The actor who plays his doubles partner is paid $500. b. A president of a company is paid not to stay in his job for the last two years of his contract. c. A jumbo je
1. The consumption function measures the additional consumption due to increased income as a percentage of that increase in income. a. True b. False 2. At relatively high levels of disposable income: a. APC is negative and APS is positive. b. APC is low and APS is high. c. APC is high and APS is low. d. MPC
What are the pros and cons of alternative strategies to tackle a foreign market, such as the acquisition of a local firm, direct investment in production and distribution assets (greenfield project), joint venture, technology licensing, and exports only?
Suppose the construction of the $360M stadium is to be financed entirely with debt to be repaid over 20 years. The repayment burden is negilible in the short run. If the multiplier effect is Additional Local GDP = [1/(1-MPC)] x initial shift in autonomous expenditures, and Marginal Propensity to Consume is 80%, how much economic
Does anyone know of a good economic impact analysis on the Internet that shows numbers using the multiplier effect?
You all hear on TV every day or so that the US consumer has been holding up and kept our economy going. Conversely, you have heard that the major cause of the current economic weakness has been the rapid decline in business investment. Business inventories are a large component of business investments. In the 3rd and 4th q
Detail how the federal reserve kept the US from sliding into a deeper recession after september 11, 2001. In your description, adress in detail the effect on interest rayes, unemployment, consumption, investment, and net export spending, the multiplier effect, and Real GDP.
Use the following Keynesian Macroeconomic model to answer the questions followed: Use the following table of consumption data of Bush Garden economy to answer the questions followed 30 pts GDP(Y) Consumption(C) Saving(S) MPC MPS $0 100 100 175 200 250 300 325 400 40
Consider the IS-LM-BP model of an open economy with sticky price levels in local currency, perfect asset substitutability, perfect capital mobility and static expectations. The economy is in both internal and external equilibrium initially. (a) Explain why the BP curve is a horizontal line at i = i*, where i is the domestic n
1 ( Production-Cost Duality) If all firms in an industry have constant returns-to-scale production functions, what can we say about the efficient (e.g. cost-minimizing) plant size in the long-run? 2 (Input Price Changes and Isocost-Isoquant Analysis) Given the recent economic slowdown, a number of policy makers have
MicroEconomics Exercises 1) Price Ceiling A local market for three-bedroom rental units is depicted by the following demand and supply equations: Qd = 2000-P Qs = -1000+P where P is the rental price in dollars and Q represents the number of rental units. a) What is the equilibrium rental price and quantity of thre
I need help with the problems attached.
Opportunity Costs of buying versus renting, production possibilities frontier, price rising to equilibrium, employment of men versus women
1. A person rents a house for which she pays the landlord $12,000 per year. The house can be purchased for $100,000 and the tenant has this much money in a bank acount that pays 4% interest per year. Is buying the house a good deal for the tenant? Where does the opportunity cost enter the picture? Treat this question as a fi
4. Consider an economy with the following Cobb-Douglas production function: Y = K1/3 L2/3. The economy has 1,000 units of capital and a labor force of 1,000 workers. a. What is the equation describing the demand for labor in this economy? (Hint: Review the appendix to Chapter 3.) b. If the real wage can adjust to equi
The number of repairs produced by a computer repair shop depends on the number of workers as follows: #of Workers #of Repairs 0 0 1 8 2 20 3 35 4
Please assist me with the following set of questions. Relevant diagrams are highly recommended. (Some of the questions are adapted from Mankiw 2003.) 1. a. Discuss with the aid of diagrams the short run effect on output, unemployment, general price level and interest rate with an increase in both consumption and investmen
Suppose that you have drawn a total product curve for labor given a specific technology. Now let some sort of technological change increase the productivity of labor. A new total product curve would have to be drawn: A) above the old with a steeper slope for any level of employment greater than zero. B) above the old wit