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In the typical signalling model, it is assumed that the costs of acquiring an education are higher for low-ability than for high-ability workers. Suppose that the government steps in and subsidizes low-ability workers for the higher costs they incur in getting an education (such as giving everyone who has been in school for 12 years a high school diploma, regardless of the person's performance in the classroom). Discuss what happens to the signalling value of a person's education. Can there be a perfectly separating equilibrium in this labor market?
A Wartburg engineering student has been out of school and working for a few years when they decide to buy a house that costs $233,000. They intend to pay a down payment of 20% and finance the rest at 5.75% per year compounded monthly on a 30-year mor..
Consider an auction with 1,000 risk-neutral bidders. It is know that these bidders have affiliated values. Based on this information we know the expected revenues for the different auction types will be
Using a production possibilities curve, demonstrate how the GI Bill affected economic growth and explain your answer.
Explain by how much did real GDP increase between 2002 and 2003. Velocity in the country of Shem is always stable.
Companies that reduce their margins on export products in the face of appreciation of their home currency may be motivated by a desire to
The City library in Amritsar has several private study rooms which are freely available to clients.
Suppose the Japanese yen price of one British pound is 163.78 yen for each pound. In which city hotel room is cheaper and by how much.
You are given the following information about the economy of Nocoin: The banks have submitted of $300 billion, two thirds of which is in deposits with the central bank.
A manufacture procedure using 2 inputs, labor as well as capital.
the price of business travels drops, the company issues a report indicating that its marginal rate of substitution between electronic media and business travel marginal rate of substitution between electronic media and business travel is - 1. Is t..
Kristina does not want to pay him $1000 on delivery. Can the baker sue Kristina for payment of the cake? What remedies are available to him?
GDP also consumption both rose by $8 billion in the second round, Illustrate what would have been the size of the multiplier.
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