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1. Show what happens to producer surplus, worker surplus and the gains from trade as workers migrate from a low- wage to a high- wage region.
2. What happens to wages and employment if the government imposes a payroll tax on a monopsonist? Compare the response in the monopsonistic market to the response that would have been observed in a competitive labor market
3. Prepaid college tuition plans, also known as Prepaid Education Arrangements (PEAs), allow you to prepay college tuition at present-day prices. The value of the investment is guaranteed by the state to cover college tuition, regardless of its future cost. You are considering the purchase of an education certicate for $25,000, which will cover the future tuition costs of your 8-year old daughter. You expect the tuition cost of your daughter's bachelor's degree to be $50,000 in 10 years. What would your personal discount rate need to be in order for it to be worthwhile for you to make the investment and purchase the certicate?
4. Some politicians in countries that are the recipients of large numbers of immigrants advocate adopt-ing laws requiring immigrants to learn the local language within a specied period of time. One economist, commenting on such a proposed law, said the following: \These laws are unnecessary, as the market provides incentives to learn the local language." Use the human capital model theory to describe the likely mechanism provided by the labor market to learn the local language. Analyze the characteristics of immigrants who are most likely to learn the new language. [Note: Relate each of these four characteristics with one of the terms appearing on the PV formula]
How do you propose to enact these standards when you are an administrator? What is the regulation or statute for? Who does the act protect? What are the consequences for violating it? Why are laws like this good for protection? How do you propose..
What is the initial effect of the tax reduction on aggregate demand? What additional effects follow this initial effect? What is the total effect of the tax cut on aggregate demand?
"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"
Most people are concerned that wages determined in the labor market are unfair and most people typically earn the bulk of their income from wages and salaries.
Explain what the Durbin-Watson statistic from regression indicates and Plot the residuals against time and comment on whether there is a seasonal pattern.
Assume that the book printing industry is competitive and starts in a long-run equilibrium. Make a diagram describing the typical company in the industry.
The technology of a company making high end, solid gold bracelets in Soho (NYC) is explained through the production function;
Owners of Sizzling Foods can earn a 14% rate of return on that land it they leased it others as a parking lot and while the last nurse hired treated 1,000 extra patients in a year. If doctors make $40,000 a year, what do nurses make?
How much insurance should I buy to be fully insured and what is a fair insurance premium?
In a competitive market, the market demand is Qd = 400 - 5P and the market supply is Qs = 10P - 80. A price ceiling of $32 will result in a. a shortage of 80 units b. a shortage of 44 units
Functions monotonic transformations? You can determine it by drawing a graph or calculating their derivatives. Assume u > 0 throughout.
You cat's summer kitty-cottage needs a new roof. You are considering the following two proposals and feel a 15-year analysis period is in line with your cat' remaining lives. (There is no salvage value for old roofs.)
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