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1. A study used "residual approach" to measure wage discrimination and concluded that 30 percent of the wage gap between men and women was due to labor market discrimination. First, discuss the residual approach. Second, why the residual approach might not provide "true" amount of discrimination. For example, wage differences between men and women do not reflect discrimination, but rather differences in rational decisions with respect to demand for education, supply of funds, societal factors, etc. Show and explain
2. An economist stated: "Discrimination against women? Now you are not talking like an economist. There can't be systematic labor market discrimination against anybody, for if anybody was being paid less than their marginal product; the profit-maximizing employers would substitute workers. The resultant shift in the relative demand curve would put an end to any wage differences that are not due to quality factors." What do you think the theories of discrimination say to support or refute this economist?
Consumers only consume Diet Coke and Potato Chips. Using indifference curves and budget constraints, graphically and intuitively explain what will happen to consumer’s optimal consumption bundle if there has been an increase in the price of Potato Ch..
Political business cycle: Do economic events affect presidential elections? To test this so-called political business cycle theory, Gary Smith20 obtained the fol- lowing regression results based on the U.S. presidential elections for the four yearly ..
Which of the following is a reason why the Japanese yen is considered money? a) The yen is an asset that lacks liquidity. b) It is backed by silver. c) It is generally accepted as a medium of exchange in all countries of the world. d) Its value over ..
Two students, Ryan Wattenberg and Emma Bennett, are discussing the idea of convergence over coffee. Ryan considers convergence to be true in theory but impractical in the real world. Most developed countries do not have similar resources endowments. ..
Calculate the forward premium on the British pound for the Dutch investor where exchange rates are in euros per pound. Is it positive or negative? why do investors require this premium/discount in equilibrium.
Which of the following statements is true about the short run and the long run? When marginal product is rising we know that
Suppose that an increase in crime (O) also results in a per unit amount of social damage equal to d(d>0).
Suppose the European Union (EU) is investigating a proposed merger between two of the largest distillers of premium Scotch liquor. Based on some economists’ definition of the relevant market, the two firms proposing to merge enjoyed a combined market..
Analytical essay about what are "liberal" (also related to Keynesianism, neoliberalism. nationalist and mercantilist, Marxist. ( also related "world system" and critical theories) how do they differ from or complement each other?
Compare also contrast the yields also maturities for each of the securities. Argue elucidate which you would hold also Elucidate why relative to interest rate risk.
Identify one positive or negative supply shock in the last decade and what is the impact that the shock has had in our economy.
Recent research has found dementia is anywhere from 14 percent to 100 percent more prevalent among the black American population than among whites. Following this, Dr. Z.H. Ivago spends more time interviewing black patients on possible memory lapses.
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