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In trying to measure the extent to which labor unions are responsible for increasing wages, economists use sophisticated statistical methods to compare the wages of unionized workers with those of non-unionized workers. Explain why it is not legitimate simply to compare the average wage across the two groups and attribute the difference to the effects of unionization.
Elucidate how do the GDP per capitals change after accounting for price indices.
Elm Industries receives profits from polluting according to the formula: pi =10Q−Q^2 where Q = pollution emitted (in tons), and profits are measured in dollars. The damages associated with pollution from this facility are estimated to be: D=Q^2 +2Q. ..
To whatever extent you find the paternalistic and externality arguments convincing, what types of responses might they justify? Consider, for example, educational TV.
The initial cost of a pickup truck is $10323 and will have a salvage value of $3850 after five years. Maintenance is estimated to be a uniform gradient amount of $160 per year, with zero dollar for first year maintenance. The operation cost is estima..
Assuming sum-of-years digits depreciation, what book value will Model-I have after two years.
Define the rivalness ratio of a good in a way that could be understood by someone who has taken principles of microeconomics course, but has not studied any other economics. Explain how we can tell that the rivalness ratio of a good does not depend o..
In the 1970s, information technology was primarily concerned with _______, while today information technology is the focus.
Conclude a price range where there might be a mutually beneficial insurance contract.
Jerry receives utility from days spent traveling on vacation domestically (D) and days spent traveling in a foreign country (F) as given by the utility U(D,F)=DF. The price of a day spent traveling domestically is $160 and in a foreign country $200. ..
Using the slope of the health expenditure function, predict the change in per capita health care expenditures that would result.
The Federal Reserve attempts to keep prices stable and unemployment low. Is there are a contradiction in these objectives? Describe the monetary policy tools that are available to the Federal Reserve to achieve these objectives.
Given the current state of energy use, which continues to grow exponentially in such countries as China and India, what measures can the United States and other Western countries take to produce more fuel-efficient and environmentally friendly fuels?..
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