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Your employer decides to institute a new compensation scheme next year. They will pay you $25,000 no matter how much you work. However, since they employ nothing but workers who earn at least double the minimum wage, they will cut wages by 50%.
a. Draw this in terms of a budget constraint (what does it look like?).
b. What will this new compensation scheme do in terms of work effort (such as hours worked per year for the company)?
Which of the following explain the downward slope of the aggregate demand curve the effect of changing interest rates on the quantity demanded of interest rate since of goods or the presence of an used production capacity and unemployment or the avai..
Two firms are playing an infinitely repeated Bertrand game, each with the same marginal cost 20. The market demand function is given by P=150-Q. In the stage game (only one period), if the firms collude with each other, then what prices will they cho..
More borrowing by firms in the domestic currency is one way to reduce currency mismatch. What would be the major issue if government insured repayment of the loans at a low cost?
This discussion assignment engages you with inter-active critical thinking on the subject of developing a comprehensive mission statement and its effectiveness in achieving organizational success
The Nottinghamshire Research Observatory in England calculated that students who attend Nottingham Technical University spend about £2,760 each in the local economy for a total of £50.45 million. In total, the impact of their spending on the local ec..
Which of the following shifts the supply curve of rutabagas rightward? (A rutabaga is a potato-like vegetable.)
John’s preferences over toothpaste (good 1) and beer (good 2) are represented by utility function u = ln x1+ x2. Prices are given by p1 and p2, and he has income of m. What fraction of his income does he spend on toothpaste?
How did Samsung’s unveiling of the galaxy S5 affect the demand for the S4? What determinant(s) of demand changed? How did Wal-Mart’s price cut compensate?
Since all the Hawkins Company's costs (other than advertising) are essentially fixed costs, managers want to maximize total revenue (net of advertising expenses). According to a regression analysis (based on 124 observations) carried out by managers,..
Show how you can derive the Aggregate demand curve when the Price level in an economy increases. By drawing separate graphs indicate how a change in the price level impacts, money market, investment demand, goods market and then draw the aggregate de..
Use of discretionary policy to stabilize the economy should the government use monetary and fiscal policy in an effort to stabilize the economy? The following questions address the issue of how monetary and fiscal policies affect the economy, and the..
The burden of a tax is mainly borne by the buyer if: a. the demand for the good is relatively price elastic. b. the supply of the good is perfectly price elastic. c. the supply of the good is relatively price elastic. d. the demand for the good is re..
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