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Suppose a drop in the compensating wage differential between risky jobs and safe jobs has been observed. Two explanations have been put forward:
a. Engineering advances have made it less costly to create a safe working environment.
1) The phenomenal success of a new reality show Die on the Job has instilled millions of viewers with an idealistic perception of work-related risks. Using supply and demand diagrams show how each of the two developments can explain the drop in the compensating wage differential.
2) Can information on the number of workers employed in the risky occupation help determine which explanation is the right one?
Sarah’s friends are trying to convince her to leave her summer job one month early, from which she earns $1200 per month, to vacation in Costa Rica. If she goes there, her out-of-pocket expenses would be $2400. What is Sarah’s marginal opportunity co..
The Sunshine Corporation finds that its costs are $40 when it produces no output. Its total variable costs (TVC) change with output as shown in the accompanying table.
If the interest rate on euro-denominated assets is 7 percent and it is 5 percent on dollar- denominated assets, and if the dollar is expected to appreciate at a 4 percent rate, for Francois the Frenchman what is the expected rate of return on dollar-..
q1. thomas schelling and expert on nuclear strategy and arms control observed in his book the strategy of conflict
Borrow from the nation with the lower nominal interest rate, invest in the nation with the higher nominal interest rate and profit from the interest-rate differential.
which good should the government impose the tax if it needs to maximize government revenue
Elucidate why the equilibria found in part (a) are only short-run equilibria. What will happen in the long run.
An article in the Wall Street Journal reported that large hotel chains, such as Marriott, are tending to reduce the number of hotels that they franchise to outside owners and increase the number the chain owns and manages itself. What type of agency ..
In the former Soviet Union, producers were paid for meeting output targets, not for selling products. Under those circumstances.
What is the purpose of economic sanctions? What problems do they pose for the nation initiating the sanctions? When are sanctions most successful in achieving their goals?
The demand equation for a company's product it Q = 500 - 3P + 2Pi + 0.1I where Q is the quantity demanded of its product, Pi is the price of its rival's product, and I is the per capita disposable income (in dollars). At present, p = $10, Pi = $20, a..
Assume that if the labor market is unregulated, the equilibrium wage for workers who do not have high school education is $5.00 an hour. Assume that the government imposes a minimum wage of $6.00 an hour. Draw a supply-demand diagram that shows what ..
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