How many workers of each type will employers hire

Assignment Help Econometrics
Reference no: EM131132290

Each entry-level software programmer in Palo Alto, California, has either high or low ability. All potential employers value a high-ability worker at $44,000 per month and a low-ability worker at $6,000. The supply of high-ability workers is Q = 0.05(W - 2,000) and the supply of low-ability workers is Q=0.1(W - 2,000), where W is the monthly wage. If workers' abilities are observable to employers, what are the equilibrium wages? How many workers of each type will employers hire? If workers' abilities are not observed by employers, what is the equilibrium wage? How many workers of each type will employers hire? What is the deadweight loss due to asymmetric information?

Reference no: EM131132290

Questions Cloud

Identify an on going project on kickstarter : Identify an on-going project on kickstarter or indiegogo that you think will be a real success. - be prepared to discuss why you think it will work
How many additional shares would simpson include : The average market price of Simpson's shares during the year was $50. The common stock equivalents added to the company's weighted average shares outstanding used for basic earnings per share was computed using the treasury stock method. How many add..
Why most women are reduced to base motivations : Identify reasons why, according to Anarchist thinker Emma Goldman in Marriage and Love (1911), most women are reduced to base motivations, economic dependency upon men and general unhappiness within conventional marriage.
Predicted difference between earnings of females and males : What is the predicted difference between earnings of females & males?  Is this significant? How would you test for the significance of age in the regression?  Is the quadratic function of age preferred to a linear function of age
How many workers of each type will employers hire : How many workers of each type will employers hire? If workers' abilities are not observed by employers, what is the equilibrium wage? How many workers of each type will employers hire? What is the deadweight loss due to asymmetric information?
What was the situation in france in 1830 : What was the situation in France in 1830? Who benefited from Louis Philippe'sleadership? What changes occurred as a result of the revolutions in the early 1830s?
Identify hardware and software needed to secure your network : Identify hardware and software needed to secure your choice of networks against all electronic threats. Compare Local Area Networks (LANs), Wide Area Networks (WANs), and wireless technologies.
What is the intrinsic value : The risk free rate is 3%, the market risk premium is 3.6% & the beta is 1.10. The market is at equilibrium, using the above information: What is the intrinsic value?
Balance of power established by the congress of vienna : What was the balance of power established by the Congress of Vienna? What role did France play in maintaining it? What role did Prussia and Russia play?

Reviews

Write a Review

Econometrics Questions & Answers

  What is the long-run average cost

A firm has a production function Q=F(K,L) with the constant return to scale, where k is units of capital and L is unites of labour.Imput prices are r=$2 per unit of K and w=$1 per unit of L.When it produces 5 units of output,it uses 2 units of cap..

  Calculate the monetary base mb-m1 and m2

Consider the following balance sheet of Princeton Bank: Assets- Reserves 30, Securities 140, Loans 280, total assets 450. Liabilities+ Capital- Transactions deposits 300, Nontransactions deposits 140, Capital 10, total liabilities + capital 450.

  How would you use data from foreign exchange market

How would you use data from foreign exchange market to decide between these two hypotheses?

  Derive the strategies that survive the iterative deletion

The payoff to student i is 10 - xi if she gets an A and 8 - xi if she gets a B, i = 1, 2. a) Derive the strategies that survive the iterative deletion of strictly dominated strategies.

  How many doughnuts will you consume

You work on a doughnut farm--you grow doughnuts. In each period, you are able to grow 20 doughnuts. If you go to the coffee & doughnut exchange, you may buy and sell doughnuts for $1 each, and buy and sell coffee for $2 each.

  Which investment would the stockholders prefer

Bernie, the manager of the S& L who will make the lending decision, receives 1% of the firm's earnings. He believes that if the S& L loses money, he can walk away from his job without repercussions, although without compensation.

  How much should you deposit in an account earning

You just inherited $10,000. while you plan to squander some of it away, how much should you deposit in an account earning 5% interest per year if you'd like to have $10,000 in the account in 10 years

  Solve the cost minimization problem for technology

he factory owner can choose between two technologies A and B: One uses capital and labor as complements yA = min [3k; 2l] and the other one as substitutes yB = k + 2l: a. Draw the isocost lines of both technologies on the same diagram.

  Discuss the challenges of producing a system

Discuss the challenges of producing a system with leading edge technology while conducting systems integration and meaningful independent testing.

  Determine what is the equilibrium level of income

Suppose the equation for th LM curve is Y=13500+100r. Use this equation to explain the level of income at which there is a zero lower bound on the federal funds rate, the interest rate that the Fed controls.

  What is temporary and permanent impact of increase in prices

What is the temporary and permanent impact of an increase in prices on wages based on these results? How would we test if the permanent impact of a price change is statistically significant?

  How much is result in an increase in consumption or spending

MPS= 40 with no government and no foreign trade a 10 billion dollar increase in investment will enventually result in an increase in consumption or spending and how much

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd