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QUESTION 1
i) Use a simple human capital model to explain the rationale for undertaking higher education
ii) Why do some people vary significantly in the amounts of human capital which they acquire?
iii) After graduating from high school, Mehvin is thinking about enrolling in a oneyear course in e-commerce. The direct costs of the course are $4,800. The potential salary that is forgone during a year amounts to $2,200. Upon completion of the course, he plans to work at Skynet Corporation for three years and then retire. The incremental income he anticipates because of his training is $3500, $4,000 and $4,500 for the three years he intends to work. The relevant interest rate is 10%. Is the decision to enroll in the data processing course rational? Discuss
QUESTION 2
i) How is the "pure" union wage advantage defined? If in a given labour market the wage rate would be $5 without a union and $7 with a union, then what is the pure union wage advantage?
ii) Briefly discuss the economic arguments for and against of trade unions
iii) Explain how, and in what direction, each of the following may cause the "measured" union wage advantage to vary from the pure advantage
1) True or False: Elections under the NLRA were intended to replace the need for striking in order to have a union recognized. 2) True or False: Companies can voluntarily acknow
Managerial economics bridges the gap between economic theory and practice
How do economists differ from accountants in the use of the term profit ? Definition of rev and accounting costs Explanation/outline of opportunity costs, for example
Corporate governance is best described as A code for organisational direction, administration and control.
The problem with the above method crops up when we want to compare two or more dissimilar (different sized) projects. A mega project may yield a very large NPV sum, whereas a mini
What are the problems of the sustainability in economic growth? Sustainability Problem in Economic Growth: Recent economic growth makes threats the future quality of life. S
Illustrate some example of the development process affected on culture. Examples of the development process affected on culture: • Foreign Direct investment (FDI) and IMF st
In what conditions might you (1) increase or (2) decrease the amount of supervision specified to a team member? Where a quality problem has been distinguished in an individual’
Is an unequal distribution of income and wealth a problem? Explain in short. Yes: because specified no government intervention, which on very low incomes cannot afford necessar
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