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Q1. In signaling model, assume high school graduates are paid a stream of income whose present value is $200,000. College graduates are paid a stream of income whose present value is X. College education costs higher-productivity workers $50,000 and lower-productivity workers $150,000. What value of X will cause higher-productivity workers to go to college and lower-productivity workers to not go to college?
Q2. In this forum we discuss the different arguments that are made in favor of international trade protectionism and the important role of the "politics of protectionism". We have learned in previous chapters that trade protectionism "distorts" the benefits and costs to the nation.
Within the context of the following discuss the following:
The politics of production versus employment: How does this political argument continue to influence our national discussion on NAFTA (North American Free Trade Agreement)
Is the US solar industry an "infant industry" that requires protection from Chinese government subsidies?
Using the method of Lagrange multipliers to derive Sharifah's demand for brownies and espressos. Explain how many brownies and espressos will Sharifah consume.
How many bottles would be demanded in entire market if price is $1.00. How many bottles would be demanded in entire market if price is $2.00.
The Federal Reserve chairman acknowledged the economy was in a recession. What actions might the federal government take to give the economy a boost?
U.S. Higher alcohol taxes, more traffic deaths. Why might re be more traffic deaths in states that have higher alcohol taxes.
a rich man has 1,000,000 in the bank earning 7% interest. He plans to give away 100,000 at the end of the year and to increase his gifting by 10% each year there after. How long with the million dollars last?
How may you apply what you learned about supply and demand from the simulation to your workplace or your understanding of a real-world product with which you are familiar?
The law of demand states that other things equal
This deviation from the classical dichotomy and the Fisher effect is called the Mundell-Tobin effect. Explain how might you decide whether the Mundell-Tobin effect is important in practice.
If you match up pairs of buyers and sellers so as to maximize the total surplus of all transactions, what is the largest total surplus that can be achieved.
about the situations when a differentiation strategy is chosen? Provide specific real world examples.
A firm that finds it extremely expensive to monitor the output of each worker will likely pay its workers
Illustrate what will be the effect on the level of checkable deposits.
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