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(a) Assume a competitive labor market. Draw the demand of labor curve for an individual firm. Assume that the firm faces a labor supply curve that is neither perfectly inelastic nor perfectly elastic. If the firm has the ability to command more effort and output from workers once they are hired, then what is occurring to the labor demand curve?
(b) Using the graph in your answer to (a), clearly identify any gains and losses to the producer and worker surpluses.
(c) Is unemployment a result of this alteration of labor demand (as in efficiency wage theories)?
A commercial bank has excess reserves of $10,000 and a required reserve ratio of 20%. It grants a loan of $8,000 to a customer, who then writes out a check for $8,000 that is deposited in another bank. The first bank will find its reserves decreas..
Some reject fiscal stimulus measures in all policy forms. Explain what the various limitations are to a successful fiscal stimulus. Be sure to consider the damaging activities and decisions of (a) private corporations, (b) commercial banks,..
Suppose one of the suppliers to Seattle Health System offers tersm of 3/20, net 60. a. When does the system have to pay its bills from this supplier b. What is the Approximate cost of the costly trade credit offered by this supplier
How does an economy achieve macroeconomic equilibrium? What affect does a high level of inflation have on macroeconomic equilibrium?
M.C. Hammer is selling off part of his very large wardrobe of puffy pants. The market price of each pair of pants depends on both the number of sequins on the pants and their age. Let this price be, in dollars, 20+.01S+2A, where S is the number of..
If there is a positive Net Advantage to Leasing the industry will lease the equipment. Otherwise, it will buy it. What is the NAL.
Identify the buyers and sellers as well as the goods or services. How closely do real world conditions match the characteristics listed in the model. Are the sellers price takers.
Starting anew from the equilibrium in part a., suppose that the cost of raw material used in the production of this good increases (assume nothing else has changed). Draw a diagram comparing the effect of the increase in the cost of materials in t..
Illustrate what accounting tools also reports would you use. Use the Library and internet to re-explore value chain management.
Suppose the market for autoworkers is in equilibrium when the automakers purchase capital goods to produce more fuel efficient automobiles and these capital goods are a substitute for workers. What happens in market for autoworkers?
Elucidate foreign demand for dollars as well as the international value of the dollar.
Suppose the elasticity of U.S. exports with respect to the real exchange rate is very low
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