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1. Some economists studying the effects of the minimum wage law have found that it tends to reduce the employment of black teenagers relative to white teenagers. Briefly explain the economics behind this finding.
2.Some craft unions, such as electricians, restrict the number of workers who can join the union and then negotiate with employers to hire only union workers. Use a demand and supply graph to illustrate the effect of a craft union on employment and wages in an industry.
3.Traditionally, unions have been strongest in manufacturing industries. In the United States,
unionism reached its peak in 1945, and it has been falling since then.
a. How does the changing sectoral composition of the U.S. economy help to explain this trend?
b. Two industries in which, traditionally, unions have been very strong are automobile manufacturing and airlines. Why has union power weakened in these industries?
Mutual funds: Provide another source for borrowers to take out a home mortgage. Provide another source for borrowers to take out a home mortgage.
Assume that the demand changes to QD = 600-2P and the supply function stays the same. Graph the new situation in Excel. Find the new equilibrium price and quantity, and show it on your graph.
These two questions are about population proportions.
Consider another policy where the government could impose a price ceiling p on the monopolist. If the government were interested in maximizing social surplus, what would be the optimal value of p when considered from the point of view of the gover..
In the debate on fixed versus floating exchange rates, the strongest argument for a floating rate is that it frees macroeconomic policy from taking care of the exchange rate.
Devise a hypothetical business situation in which buying a lookback call option on a commodity may be a sound strategy for you. How about a down-and-out call option?
You want to be part of the Green Revolution and are looking to find ways to reduce your energy use. But first, you must know what your energy use is.
Suppose you have a limited money income and you are purchasing products A and B whose prices happen to be the same. To maximize your utility you should purchase A and B in shuch amounts that?
Evaluate the forecast error measures and residuals to determine if the error is acceptable or has systematic variation. Write conclusion relative to the acceptability of the forecast.
What role can the government play in reducing the emission of greenhouse gases? What role can individuals play? If you were the economic advisor in the government, what economic measures would you suggest to tackle global warming?
Researchers have estimated the long run demand elasticity for almonds is -0.47, and the long run supply elasticity is 12.0. The short run demand elasticity for almonds is -0.30
Suppose that the economy is already in recession, and both President and Congress have declared to do something to restore the economy.
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