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Over the past twenty years, the income gap between workers with college degrees and those without a college education has grown. Draw two supply and demand diagrams, one for workers with college degrees and one for workers without degrees. Now suppose new information technologies raise the marginal product of highly educated workers but do not affect the marginal product of less-educated workers. Use your supply and demand diagrams to illustrate what happens to the wage gap between the two types of workers.
There is a monocentric town that is shaped in a circle. The yearly rent for land in the CBD there is $36,000 per dunam. The value of the agricultural land on the outskirts of the town is $1,500 per dunam. The cost to travel in the town is $310 per..
Why is it desirable for a country to have a larger GDP? Give an example of something that would raise GDP and yet be undesirable.
Consider the OLG model with warm glow preferences in Section 9.6, and suppose that preferences are given by c(t)ηb(t)1-η, with η ∈ (0, 1), instead of (9.21). The production side is the same as in Section 9.6. Characterize the dynamic equilibrium of..
How does the transition path differ depending on whether capital isreversible (convertible back into consumables on a one-to-one basis) or irreversible?
Summarize how the vision, mission, and values guide the division's strategic direction.
In a closed economy the following holds: Household consumption C is given by the consumption function: C = 100 + 0.75Yd Planned investments are I = 250 (independent of Y ). Household disposable income: Yd = Y - T, where Y is production. Taxes depend ..
How did Pop Art challenge conventional ideas about originality? Consider the subject matter and techniques of artists like Andy Warhol and Roy Lichtenstein.
In May 2012, the yields to maturity in the table below were recorded on Treasury discount bonds. If the expectations theory of the term structure holds, what do bond traders expect the interest rate on five-year discount bonds to be in May 2017, M..
Unique creations holds a monopoly position in the production and sale of magnometers. The cost function facing Unique is estimated to be TC=$100,000+20Q a) What is marginal cost for Unique b) If the price elasticity of demand for Unique is current..
What do you think would happen to health care expenditures in the United States under either the ACA or a single-payer plan? Consider the following:
Characterize the BGP in the Cobb-Douglas case. Derive the common growth rate of output, capital, and consumption.
Suppose that the economy starts at equilibrium and the mpc = 0.8. What would be the effect of a $300 increase in taxes once all the rounds of the multiplier process are complete
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