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1. In the US, the wage-skills relationship in the labor market before government intervention is wus=100+0.4s, where s is the number of "efficiency units of skill" and w is the weekly wage. In Canada, the wage-skills relationship is WC=250 + 0.2s. a. Draw the wage-skills relationships for the 2 countries on a graph. Will immigration from Canada to the US be positively or negatively selected? Where will the skill cutoff be between immigrants and non-immigrants in Canada (i.e. what value of s)? b. Now suppose the US creates a welfare program that imposes a weekly wage floor of $280 (i.e. it provides a subsidy for any worker that earns less than $280 per week that brings them up to that level). Draw the wage-skills relationship for the US and Canada on a graph. What happens to migration from Canada to the US? Who will migrate? What are the new cutoffs?
If expected inflation is constant and the nominal interest rate increases, how does the real interest rate change?
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1.sam smith owns an internet radio company that has subscribers in houston and dallas. the demand functions for the 2
Determine the direction of comparative advantage and the limits to the relative wage rate A and B are the countries, the products are S and T and A has s=6 and T=2, and B has S=15 and T=12
A plastic surgeon thinks she can make more revenue by lowering the price of cosmetic surgery.If cosmetic surgery is an elastic service, is she correct in her assumption.
When the government mandates that firms supply a particular benefit, it is usually the case that . (We exclude the case that cost is less than valuation)
Suppose velocity is constant and real output grows at 3% per year and money supply grows at 8% per year. Using the Quantity Theory of Money,
A sample of 59 account balances of a credit card company showed a sample mean balance of $1,150 and a sample standard deviation of $200. At a 2% level of significance, test to determine if the population mean balance is significantly different from $..
A company obtained $500000 for a necessary technology from a venture capitalist who charges them 24% compounded monthly. the agreement calls for no payment until the end of the first month of the fourth year, with equal monthly payments thereafter..
alchem l is the price leader in the polyglue market. all 10 other manufacturers follower f firms sell polyglue at the
question 1sales of shampoo by cleanhair inc. have recently decreased from 1300 to 1100 units in response to a price
What is a natural monopoly How does a natural monopoly lead to lower costs than would exist if there were more than one firm in an industry that is a natural monopoly
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