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Firms are looking to hire employees but cannot discern between skilled or unskilled employees. Skilled are worth $100,000 to the firm and unskilled are worth $30,000. The reservation price for skilled is $70,000 and $20,000 for unskilled. There is a 50% chance that an employee is skilled. Which workers will be hired and how much will they make?
Was innovation accelerated or suppressed by the government monopoly granted to Fulton? Why? How did innovation change after the monopoly was broken? Give one or more examples of modern companies that are producing value in restricted markets, like Va..
most powerful people in the world might be measured more powerful than most countries leaders
Earlier this year, Greek citizens, fearing currency changes or capital controls, took billions of euros out of their bank accounts. Some of it they sent to banks in other countries, and some of it they even hid in flower pots, freezers, and yes, unde..
Illustrate what are some of the downside risks also potential problems involved when using fiscal policy.
Are consumers of rental-housing in Prescott well-served by this price ceiling policy? Provide a careful economic analysis in support of your claim.
Draw labor supply and demand curves for cashiers in Hadley supermarkets. Real World Micro 2.4: Jeannette Wicks-Lim argues that the minimum wage could be raised without causing significant job loss. Why, in her view, would companies pay higher wages w..
A former Federal Reserve official argued that at the Fed "the objectives of price stability and low long-term interest rates are essentially the same objective"
The interest earned is deposited back into the savings account at the end of each month. How much is this account worth after 24 years? Submit your answer to the nearest dollar.
An energy company orders metric tons of liquid natural gas that is used at the rate of 1,000,000 metric tons per year. Delivery lead time has averaged 8 days. What is the economic order quantity (in metric tons)? What is the total holding cost for th..
A firm faces the demand curve: P = 60 - 0.5Q. What is the point elasticity of demand when Q = 20?
Show the effect of an increase in the price that the government charges for electricity.
According to the Green Party of Canada: “Eliminating poverty will pay for itself in reduced crime rates. Failure to eliminate poverty will cost our society far more than an effective program to make poverty history in Canada.” Now use the supply-dema..
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