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Each entry-level software programmer in Palo Alto, California, has either high or low ability. All potential employers value a high-ability worker at $44,000 per month and a low-ability worker at $6,000. The supply of high-ability workers is Q = 0.05(W - 2,000) and the supply of low-ability workers is Q=0.1(W - 2,000), where W is the monthly wage. If workers' abilities are observable to employers, what are the equilibrium wages? How many workers of each type will employers hire? If workers' abilities are not observed by employers, what is the equilibrium wage? How many workers of each type will employers hire? What is the deadweight loss due to asymmetric information?
The weight of wrestlers is normally distributed with a mean of 205 pounds and a standard deviation of 20 pounds. What is the probability that a particular wrestler will weigh less than 210 pounds
An outer beltway is being planned for a metropolitan area in your state. The initial cost is estimated to be $150M. Benefits are expected to be $8M a year. Annual maintenance costs are expected to be about $800K.
For tax purposes, "gross income" is all the money a person receives in a given year from any source. But income taxes are levied on "taxable income" rather than gross income. The difference between the two is the result of many exemptions and dedu..
hurricane delayed the cash inflows that the managers of firm metro expected from a project that being built and
A "mathematically fair bet" is one in which the amount won will on average equal the amount bet, for example, when a gambler bets, say, "$100 for a 10 percent chance to win $1000 ($100 = .10 x $1000). Assuming diminishing marginal utility of dolla..
Suppose the government currently raises $100 million through a 1-cent tax on widges, and another $100 million through a 10-cent tax on gadgets. if the government doubled the tax rate on widgets
Statistics for the economy as a whole are D= $2,000 billion, R= $200 billion, C/D= 0.2=ratio of currency to transactions deposits, N/D= 2.0= ratio of nontransactions deposits to transactions deposits, MMF/D = 1.6 = ratio of retail money-market mut..
the government wants to adopt a fiscal stimulus, but is worried about raising the budget deficit, so, it decided to raise expenditure and taxes by $200 each, what will happen to equilibrium GDP? Creat a new multiplier model graph and show separate..
Assume an open, mixed economy. That is, foreign trade is part of the economy, and the economy includes both a public (government) and a private (consumers and businesses) sector. Given this, aggregate demand is expressed as (C + I + G + X). Assume..
Due to its remoteness, Siberia can be considered as a closedeconomy. Recent data about its popula- tion movements indicate thatthe region suffered from a severe loss in its working agepopulation from 1995 to 2005.
On graph paper, plot the Cookie Monster's total utility and marginal utility. Due to the difference in the order of magnitude, make them two separate graphs. In each case, put cookies on the horizontal axis and utility on the vertical.
If consumer income decreases by 3.2%, what is the expected percent change in consumer demand (assuming there are no other changes that would affect demand for coffee - no price changes)
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