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1. Why do economists think that discrimination in the labor market is an unlikely explanation for the persistent inequality in earnings between women and men and among the races?
2. Suppose that the government redistributes income by taxing the 60 percent of households with the highest market incomes 10 percent, then distributing the tax collected as an equal benefit to the 40 percent with the lowest market income.
Calculate the distribution of income after taxes and benefits and draw the Lorenz curve
(i) before taxes and benefits and
(ii) after taxes and benefits.
The price of a plane ride rises by 10 percent. The price elasticity of demand for plane rides is 0.5 and the price elasticity of demand for train rides is 0.2. The cross elasticity of demand for train rides with respect to the price of a plane rid..
A sum of $16,000 per year will be recieved uniformly over a five year period beginning two years from today. What is the present value of this deferred-funds flow if interest is compounded continuously at a nominal rate of 9%
The Santa Barbara Bowl (SBB) holds outdoor music events (M), earning $3 of revenue from each concert and with total costs of cM(M) = M2=8 for M concerts. Ursula is a writer who lives right next to the SBB and who sells her novels on the competitiv..
What effect will each of the changes listed in Study Question 3 of Chapter 27 have on the equilibrium level of GDP in the private closed economy? Explain your answers.
A delivery company is considering adding another vihicle to its delivry fleet, all the vehicles of which are rnted for $100 per day. Assume that the additional vehicle would be capable of delivering 1500 packages per day
Suppose the income of buyers (Y) increases by 10 percent (calculated as change in Y/average Y) and, as a result, the quantity demanded of the good increases by 2 percent (calculated as change in Qd/average Qd). Check the correct statement(s): A. T..
Maximum possible combinations of food and clothing that can be produced in a given period of time: Units of food (millions) Units of clothing (millions)Draw a PPF for this economy. b. What is the opportunity cost of moving from producing 4 mi..
Sales have grown over this period with relatively few shocks due to uncontrollable weather, political and sporting events. This online retailer carries no inventories; when it receives a pre-paid on-line order from a customer.
How does unionization affect wages and the composition of the workforce?
Keeping in view this notion, assume that Investment (I) = 100, Savings (S) = 120, Exports (X) = 40, Imports(M) = 30, Taxes (T) = 40, Government Expenditures (G) = 50a. Point out the leakages and injections functions.
Suppose that when you are at spot n, you can see the occupancy status of spot n and the next five spots ahead. What should you do? What is the expected cost to you?
Since the VPAc€?cs trust you, they asked you to figure out the most they should pay for a license from SohnCo.
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