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Using neo-classical model of labor-leisure choice to answer the following questions. (You need to verify your answers using graphs and arguments.)
a. How does an increase in wage rate change the optimal consumption-leisure combination chosen by the worker? State income effect and substitution effect.
b. Suppose the government grants $1000 to women who are completely out of the labor force. If this eligible woman gets a job in labor market, government takes away 50 cents from the cash grant for every dollar earned by the woman. Wage rate in labor market is $10 per hour. How does this welfare program create work disincentives for women? (hint: compare optimal choice before and after the program being effective).
Describe in 100 words or less the condition of “full employment” and explain why, even under the conditions of full employment, there is still a percentage of the labor force who are not working.
Bayer Schering Pharma AG, Germany owns Alka-Seltzer, which was launched in 1931 and was meant for relief of minor aches, pains, inflammation, fever, headache, heartburn, sour stomach, indigestion, and hangovers. Alka-Seltzer Plus was a spin-off of th..
How does the federal reserve really influence the interest rates and cause them to go up and down? Also when the federal reserve sells securities they take money out of the economy because banks buy the securitie.s But my question is what kind of sec..
What do Supply-Siders think about the overall economy? What Policy Levers do Supply Siders think should be used in this approach? Why is Supply-Side not accepted as an Economic Theory?
Observe and study the service economy operation processes. Identify possible service operations topics, for example service process, service blueprint, service encounters and service quality.
Review the candidates’ tax proposals: Which tax plan(s) is/are proportional taxes? Which plans are the most progressive? Which plans have the same tax rate on income and capital gains? Discuss what principles underlie each plan?
Increasing health depreciation is applicable and consistent with
In the IS/LM model, what are the effects of an increase in the money supply? Show graphically and explain. When is monetary policy more effective, when the LM curve is relatively flat, or when the LM curve is relatively steep? Explain.
Can you identify the consequences of a strong dollar or a weak dollar in the United States? Which direction do you prefer for the overall health of the American economy? Should the U.S. take measure to ensure that the dollar retains its dominant role..
Greater access to foreign direct investment among developing nations has increased the costs of obtaining investment capital for domestic projects that promote economic growth. Global public goods such as health care are everywhere and are easy to id..
Elucidate the equilibrium price and equilibrium quantity. Suppose the price is currently $2. What problem exists in the economy? What would you expect to happen to price.
Identify some of the major challenges confronting the international trading system. What problems docs terrorism pose for globalization? Identify the major fallacies of international trade.
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