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The Family and Medical Leave Act of 1993 (FMLA) guaranteed maternity leave to many working women across the U.S. However, the law only applied to firms with 50-or-more employees; employees of smaller firms were not covered by the FMLA. Suppose that providing maternity leave costs firms $5/hour for each new mother, and women value the benefit at $3/hour. Graphically show the predicted wage and employment effects of the law according to neoclassical theory. How do the predictions change if women value the benefit at $5/hour?
Analyze a two-period model for the market of computers in which two firms operate. Firm 1 only produces in period 1 and is endowed with an old technology providing a quality level vO to consumers.
After accepting your recommendation not to pursue the 2024 Olympics (hint, hint), Mayor Strange comes to you with another idea. The Jacksonville Jaguars are considering moving to Montgomery. They have said they will do so if the taxpayers of Montgome..
(a) If tuition is set at $3,000, how many students will enroll? Now suppose that society gets an external benefit of $1,000 for every enrolled student. (b) Draw the social and market demand curves for this situation on the graph below. (c) What is th..
What is the most conventional stance regarding the use of absolute value in the definition of Own-price elasticity-Cross-price elasticity
Galvanized Products is considering a new computer system for their enterprise data management system. The vendor has quoted a purchase price of $100,000. Galvanized Products is planning to borrow one-fourth of the purchase price from a bank at 15 per..
The many loopholes present in the federal income tax system prior to the 1986 tax reform caused all of the following except
One month ago, they added five workers, and productivity also increased by 50,000 pages per day. Copiers cost about twice as much as workers. Would you recommend they hire another employee or buy another copier?
Set up an Edgeworth Box to depict this situation and elucidate why the situation is unlikely to be Pareto efficient.
Suppose a protective tariff on shirts is initiated in Country X, which had been importing them from Country Y. Among the following groups, who gains an who loses (short term)?
Motors has determined that the price elasticity of demand for two customer segments (A Luxury Car and a Premium Car) is -1.35 and -1.55. Based on their expectations of profitability, Kashian realizes the price of a Luxury Car should be $51,500. How m..
The World of Videos operates a retail store that rents movie videos. For each of the last 10 years, World of Videos has consistently earned profits exceeding $29,000 per year. The store is located on prime real estate in a college town. What is the o..
You purchased a bond for 9500 dollars. The bond matured in 4 years and you sold it for 111,000 dollars. The par value (face value) of the bond was 10000 dollars. Interest payments were made every 6 months. The personal rate of return you received (so..
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