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Suppose years of schooling, s, is the only variable that affects earnings. The equations for the weekly salaries of male and female workers are given by:
Wm = 500 + 100s
Wf = 300 + 75s
On average, men have 14 years of schooling and women have 12 years of schooling.
a. What is the average male-female wage differential in the labor market?
b. How much of this wage differential is due to discrimination? Note that there are two possible ways to calculate this, so do it both ways and compare the two answers you get.
How will the unemployment rate during the current period compare with the natural rate of unemployment.
Discuss the role and the effect of reputation on cooperative behavior by selfish individuals. Discuss the biological reason for cooperative behavior with relatives.
In the context of share holder maximization model of a firm, what is the expected impact of each of the event on the value of the firm?
The dividing line between the 1 percent and the 99 percent is an annual income of ______. (LO11)
In 2011, the CPI increased by 1.4%, the GDP price index increased by 1.2% and the PCE increased by 1.8%, we can see all are increases, but why does each one of these measure give a different inflation rate?
1. Identify key processes in the organization, based on the perception and the allocation of responsibilities. 2. The tables contain primary source data.
Farm must decide whether or not to purchase a new tractor. The tractor will reduce costs by $2,000 in the first year, $2,500 in the second and $3,000 in the third and final year of usefulness. The tractor costs $9,000 today, while the above cost savi..
In order for a price-discrimination scheme to be effective at boosting profit, the seller must...
You have a gross income of $386200 in 2014. Your filing status is married filing jointly. You might itemize deductions and you are allowed 5 exemptions. During the year you donated 3.3% of your gross income to charity and you have an interest-only mo..
Even though the use of checks lower transaction costs when compared to the use of paper currency, it is unlikely that the use of paper or metallic currency will disappear entirely. Why?
A government starts off with a total debt of $3.5 billion. In year one, the government runs a deficit of $400 million. In year two, the government runs a deficit of $1 billion. In year three, the government runs a surplus of $200 million. What is the..
Mary is in equilibrium. The MUa =6, MUb =12, Pa=2, what is the price of b? Zach is in equilibrium. The MUa=2, MUb=8, what is the price of a in terms of the price of b? What is the utility maximizing or optimization condition?
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