Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
a. Assume that skilled wages are twice that of unskilled wages, and that half of the population fits into each category, skilled and unskilled. Graph the Lorenz curve and calculate the gini coefficient.
b. Assume that skilled wages become 3x that of unskilled wages, as demand for skilled workers increases due to new technology. The population breakdown into skilled and unskilled remains the same. Graph the new Lorenz curve and calculate the new gini coefficient.
c. Assume now that there is a supply response to the higher skill premium, causingthe fraction of skilled workers to increase from one half to two thirds of the population. Also, given the increased supply of skilled workers and decreased supply of unskilled workers, the ratio of skilled wages tounskilled wages drops to 2.5. Graph the new Lorenz curve and calculate the new gini coefficient.
d. What has happened to inequality according to the Lorenz criterion? According to the gini coefficient? Are all comparisons unambiguous?
BigBiz, a local monopsonist, currently hires 50 workers and pays them $6 per hour. To attract an additional worker to its labor force, BigBiz would have to raise the wage rate to $6.25 per hour. What is BigBiz's marginal factor cost?
Which of the following is the most likely explanation for the imposition of a price ceiling on the market for milk? Policymakers have studied the effects of the price ceiling carefully, and recognize that the price ceiling is advantageous for society..
What would happen to the demand curve if the major taxi companies lowered their prices? If you were asked to forecast future demand for this firm, how would you set up a forecasting model?
Assume that HP is evaluating idea of placing a DC (Distribution Centre) in Europe. What are advantages and disadvantages to this model.
Movie time is a theater chain thinking of opening a new theater in a town. It is trying to decide whether to build a large theater or a small one. Estimates indicate that the small theater size would be large enough to handle demand, but Movie time i..
A congested computer network has a 0.002 probability of losing adata packet and packet losses are independent events. A lost packetmust be resent. Round the answers to 4 significant digits.
Illustrate how each of the following events would shift the AS schedule and potential RGDP, thereby altering equilibrium prices and output levels in the economy. Use an aggregate supply-aggregate demand diagram in your explanation and assume that the..
The U.S. money supply (M1) at the beginning of 2000 was $1,148 billion broken down as follows: $523 billion in currency, $8 billion in traveller’s checks, and $616 billion in checking deposits. Suppose the Fed decide to reduce the money supply by inc..
How is the topic of the minimum wage currently being discussed by congress? Do you think there should be an increase in the minimum wage? Discuss fully with two examples to support your position. How do you think it would affect unemployment? Explain..
A drought in California destroys many grapes. As a result of the drought, what happens to the consumer surplus in the market for grapes and to the consumer surplus in the market for red wine? Draw the necessary graphs to represent this scenario and t..
A gourmet ice cream store has fixed cost expenses (rent, utilities, etc.) of $100,000/year. The ice cream cost $5/liters to produce and sell for $7 per liter. The store sells around 150,000 liters of ice cream per year. If the gourmet ice cream store..
Why does entry and exit of firms occur in the long run and not in the short run? Using appropriate diagrams, discuss the role or importance of exit and entry conditiontions in a perfectly competitive market? What is the significance of the shut-down ..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd