Distinguish superior from inferior workers

Assignment Help Business Economics
Reference no: EM132492508

Imagine a world populated by superior and inferior workers. A superior worker is worth $50 per hour to any employer, and an inferior worker is worth only $20 an hour. These people work for exactly 10 hours and then retire. Let s be the proportion of superior workers, and (1-s) the proportion of inferior workers. Assume that in the labour market equilibrium, workers are paid their expected worth.

Suppose no firm can distinguish superior from inferior workers. Write down the expression determining the common wage, and explain it.

Now suppose that a degree costs superior workers $200 and that it is simply impossible for an inferior worker to earn a degree.

Reference no: EM132492508

Questions Cloud

What annually compounded rate of return misty : What annually compounded rate of return Misty needs to earn to reach her goal is ? %. ?(Round to two decimal? places.) Misty needs to have ?$12,000 in 8 years
Explain how opening up for trade at world relative : Explain how opening up for trade at world relative prices results in greater welfare gains to a country if the country originally had a monopoly in the good
Which statements about revenue recognition methods is true : Which statements about revenue recognition methods is true. The completed contract method recognizes revenue at the time of the sale.
How much revenue and gross profit is recognized : During the first year was $1.5 million. How much revenue and gross profit is recognized in the first year under the percentage-of-completion method?
Distinguish superior from inferior workers : Suppose no firm can distinguish superior from inferior workers. Write down the expression determining the common wage, and explain it.
Why is the incidence of corporate income tax : Why is the incidence of corporate income tax not considered to be regressive?
Prepare the operating activities section of the statement : Prepare the operating activities section of the statement of cash flows for 2017. Use the indirect method. (Show amounts that decrease cash flow)
What is meant by a rule of capture : Is it efficient or inefficient? Give an explanation for your answer based on economics and one (1) example in support of your answer.
What will the stock price per share be : A bond investment is available that pays a tax-free 8%. The corporate tax rate is 35%. Ignoring risk, what is the pre-tax return on taxable bonds?

Reviews

Write a Review

Business Economics Questions & Answers

  Sample size number considered themselves overweight

A poll was taken this year asking college students if they considered themselves overweight. A similar poll was taken five years ago.

  Example of a profane or sacred activity

Is the use of oracles an example of a "profane" or "sacred" activity? Explain Bronislaw Malinowski's notions of the "sacred" and the "profane

  Correlation coefficient between them is zero

The returns of Stock A and Stock B are independent of one another, i.e., the correlation coefficient between them is zero, Which of the following is correct?

  Find the irr for the company project-deep waters

Deep Waters, Inc is using the internal rate of return (IRR) when evaluating projects. Find the IRR for the company's project.

  The standard for extreme poverty was established

The standard for extreme poverty was established at one dollar per day per person in 1985. if inflation was 2% year, how many dollars per day do the people in extreme poverty make now?

  Changes in the prices of food-clothing and medical care

According to the BLS, the CPI rose 3.8% in August of this year compared to a year earlier. Food prices rose 4.6% and clothing prices were up 4.2%, while new car prices rose 3.8%, and medical care was up 3.2%. What percentage change in the CPI up unti..

  Aggregate consumption equation

Suppose that the aggregate consumption function is given by the equation: C = 200 + 0.8 YD, where C represents consumption and YD represents disposable income.

  Calculate the gini coefficient and coefficient of variation

Calculate the gini coefficient and the coefficient of variation for each of the following distributions. [Hint: It will save significant time if you make use of the inequality principles (population, relative income, etc.) to simplify where possible...

  Determine the geographic extent of political control

What factors determine the geographic extent of political control - the size of what we would now call the "state"?

  Federal excise taxes on gasoline vary widely across

Federal excise taxes on gasoline vary widely across the developed world. The United States has the lowest taxes at USD $0.40 per gallon (or £0.07 per liter); Canada has taxes of $0.60 per gallon, Japan and much of Europe is $2.00 per gallon, while Br..

  Qwhy have generic drug companies been so successful explain

q.why have generic drug companies been so successful? explain what political conditions also economic conditions would

  Relevant factors that should be considered

Discuss the ways in which How Proposed Trump Tax Cuts Will Affect a Trump presidency might have an effect on a firm whose headquarters are in New York.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd