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Suppose there are two types of jobs in the lobar market: "safe" jobs and risky jobs. Describe
i) how the worker decides whether to accept a safe job (where she cannot be injured) or a risky job (where she will certainly be injured).
ii) how the firm decides whether to offer a safe working environment or a risky environment.
b) There are two types of farming tractors on the market, the FT250 and the FT500.Over their lifetime, one in ten FT250s is expected to result in an accident, as compared to one in twenty-five FT500s. Further, one in one-thousand FT250s is expected to result in a fatal accident, as compared to only one in five-thousand FT500s. The FT250 sells for $125,000 while the FT500 sells for $137,000. At these prices, 2,000 of each model are purchased each year. What is the statistical value farmers place on avoiding a tractor accident? What is the statistical value of a life of a farmer?
b.) If the firm faces a horizontal supply curve of labor at W*, how would it determine E*, the equilibrium level of of employment c.) Since it is an upward sloping curve, it will not pick E*. How will it decide how much labor to employ, and how wi..
Which variables typically are negotiation points in an LDC multiyear restructuring agreement (MYRA)? How do changes in these variables provide benefits to the borrower and to the lender?
The supply of luxury boats is perfectly elastic, the demand for luxury boats is unit elastic, and with no tax on luxury boats, the price of luxury boats is $1 million and 240 luxury boats a week are brough. now luxury boats are taxed at 20 percent..
What alternative policy would you propose to make plenty of housing available to low-income families that would not be subject to the problems of rent controls? Illustrate the effects on supply and demand from part 1.
What is the marginal physical product of the fifth worker? What is the weekly wage of the fifth worker? What does the price of output need to be in order for the firm to profit from hiring the fifth worker?
Suppose your marketing department does a survey of potential users and finds that these users place the following values on the two versions of your software.
How does high income inequality suppress economic growth. With respect to social conflict, credit constraint on the poor, "poor person" median voter, less developed countries have more children, etc.
In a Solow Growth model with technological change, if population grows at a 2 percent rate and the efficiency of labour grows at a 3 percent rate, then the steady state total output grows at what percent rate?
Elucidate the impact of the global financial crisis of 2008-2009 on the economies of industrialised countries and emerging markets. What effect do problems like these have on attitudes towards free trade.
according to the wall street journal merger and acquisition activity in the first quarter of 2004 rose to 5.3 billion -
this chapter argued that saving and spending behavior depended in part on wealth accumulated savings and inheritancebut
Elucidate the difference among a monopoly and an oligopoly, the welfare effects of monopoly, cost advantages that create monopolies, government actions that create monopolies, and government actions that reduce market power.
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