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Wage differences between men and women do not reflect discrimination but rather differences in job continuity and rational decisions with respect to education and on-the-job training.”
Many professional sports athletes have incentive clauses in their contracts. These indicate tha: a) the team owner has asymmetric information b) the athlete might engage in moral hazard, which the team owner wishes to avoid. c)the athlete might engag..
Explain: Because it is better to be safe than sorry, ie to exhibit precaution, the government should ban adoption of technologies like genetically modified organisms and medicines like ebola treatments until such innovations are proven to pose no ris..
Suppose that two price-quantity demanded combinations for some product are ($1.20, 90 units) and ($0.80, 110 units). Using the mid points variation of the arc own price elasticity of demand formula, calculate the coefficient of elasticity for both..
Explain how the average rate of per capita income in south africa between 1960-1991 compered to 1991-2010.
Suppose that a firm’s production function is Q = min{K, L}. Currently, the wage is w = 8 and the cost of capital is r = 8. What is the minimum cost method of producing Q = 40 units of output? Suppose that wages fall to w = 4. Keeping total cost the s..
You live in a small town with basic medical care facilities and a couple of general practitioner physicians. One of the physicians has said that your cousin needs to be seen by a specialist. However, the nearest specialist is 3000 miles away, on the ..
Illustrate what is the economy's MPC? It's MPS. Illustrate what was the APC before the increase in disposable income.
Assume the U.S. currently grows 2.5 million tons of fresh winter fruit and that the resources absorbed in the production of this fruit could have produced 300,000 laptop computers. Therefore, the opportunity cost of producing 1 million ton of fresh w..
What about 60 airplanes and 60 buses. Illustrate what can be said about the utilization of resources when 20 airplanes and 20 buses are produced.
When a purely competitive market is in equilibrium:
Mary's indifference map and budget constraint for goods x and y are shown below. If Mary spends all her money on x and y which bundle will she choose to maximize her utility?
An economist estimated that the cost function of a single-product firm is: C(Q) = 110 + 20Q + 30Q2 + 10Q3. Based on this information, determine the following:
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