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Suppose there are two types of workers in population: 30% of the population is high-ability workers and 70% of the population is low-ability workers. Firms wish to allocate high-ability workers to high-ability required jobs and pay $500,000, and to allocate low-ability workers to low-ability required jobs and pay $350,000. However, although workers know their own type, firms do not know whether a particular applicant is a high-ability worker or a low-ability worker.
What is the equilibrium price and quantity? What is the market outcome if the price $2.75? What do you expect to happen? Why? What is the market outcome if the price is $4.25? What do you expect to happen? Why?
What is the impact of the trade surplus or trade deficit upon the interest rates and currency exchange rates.
Provide some evidence (data) of success and some evidence of failure of our national sustainability public policy (use food, or water, or air
Explain what "having a comparative advantage” at producing a particular good or service means. What does "having an absolute advantage” at producing a good or service mean?
$1000 was withdrawn from a savings account earning 3% interest, $2000 additional was borrowed @ 7% interest. What is the opportunity cost of the financial capital invested in the business? When a firms only variable input is labor, then the slope of ..
When the price of good X is 100, the quantity demanded is 100. Calculate the relevant elasticities for the following changes: When the price of X changes to 50, the quantity demanded rises to 250. When the price of Y changes from 5 to 10, the quantit..
Suppose the own price elasticity of demand for good X is -3, its income elasticity is 2, and the cross price elasticity of demand between good X and Y is -5. Determine how much the consumption of this good will change if:
1. Expenditure-switching policies designed to improve a current account deficit
Discuss how to close a recessionary gap. Discuss how to close an expansionary gap. What is the target and what happens if the policy "over-shoots?" What happens if a president tries to lower the unemployment to win the election? Did this ever happen?..
q1. consider the electoral competition model with three candidates we saw in lecture 3. extend the model to incorporate
How much an employee, who earns a minimum wage in Washington, must contribute to employment insurance, health care costs, minimum vacation requirements, and government pension plans ?
Jack and Jill want a treehouse to play in. They have to decide simultaneously whether to build or not to build. Each individual who builds, bears a cost of 3. They both have acess to the treehouse once it is built. What is Jack's strategy? What is Ji..
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