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Equilibrium discrimination and crowding. Suppose there are two occupations, chefs and truck drivers.
Draw hypothetical supply and demand graphs for men and women to both occupations assuming that some of each gender prefers each job. Now, assume that discriminatory actions take place in the restaurant business preventing men from becoming chefs. Show the effects of discrimination on your graph.
Who benefits and who loses from this discrimination? Show the effect of discrimination on wages and employment in both occupations and on total output in each. (Hint: have one graph for chefs, and a separate for truck drivers)
Angry about the discrimination, aspiring male chefs’ successfully lobby Washington to crack down on discrimination practices in the restaurant business. If discrimination is eliminated through this process, show the changes that will take place in the labor markets for chefs and truck drivers. Who benefits and who loses from the ban on discrimination?
Suppose you borrowed $10,000 at an interest rate of 12%, compounded quarterly over 36 months. At the end of the first year (after 4 payments), you want to negotiate with the bank to pay off the remainder of the loan in 4 equal semi-annual payments. W..
Five annual deposits in the amounts of $7,500, $6,000, $4,500, $3,000, and $1,500, in that order, are made into a fund that pays interest at a rate of 8% compounded annually. Determine the amount in the fund immediately after the fifth deposit.
Suppose an economy produces three goods - Economy with three goods (rice, bananas, and strawberries), Draw its PPF assuming constant opportunity costs. Then draw it with increasing opportunity costs
If total mortality among children remains constant whereas the incidence of that mortality shifted from late childhood to untimely rates of fertility declined.
The market basket utilized to calculate the CPI in Aquilonia is 4 loaves of bread, 6 gallons of milk, 2 shirts also 2 pairs of pants.
You have come to realize which you are only buying 3 bottles of wine a week now whereas you utilized to buy six bottles of wine when you made $60,000 a yr. Given this situation you would describe wine as a.
What are the characteristics that make this international company different from domestic companies? Is this company successful? What makes this company a success or failure?
Suppose you purchased a 25-year, $2.5 million deep discount bond when it was intially offered. Four years later you sell the bond and market interest rates have risen from 6.25% to 8.54%. Calculate the initial price of the bond. Calculate the current..
Suppose in Fiscalville there is a 5 percent tax on the first $10,000 of income, but a 15 percent tax on earnings between $10,000 and $20,000 and a 25 percent tax on income between $20,000 and $30,000. Any income above $30,000 is taxed at 35 percent. ..
Firms hurt by cheap imports typically argue that restricting trade will save U.S. jobs. What’s wrong with this argument? Are there ever any reasons to support such trade restrictions?
Larry wants to determine what kind of growth he needs in order to achieve a $2,500,000 in net worth when he retires. To achieve this goal, he plans to invest $12,500 each year (starting one year from now) into an account that earns an unknown interes..
The rate of economic growth per capita in France from 1996 to 2000 was 1.9% per year, while in Korea over the same period it was 4.2%. Per capita real GDP was $28,900 in France in 2003, and $12,700 in Korea. Assume the growth rates for each country r..
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