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1. Revisit the definition of affirmative action: "Affirmative Action maybe defined as proactive steps to erase differences between minorities and non-minorities in the labor market". Suggest a modified version of the Becker model that includes a policy intervention requiring businesses to proactively hire Black workers. Describe the changes in the model parameter(s) and resulting changes if any in the hiring decisions of the three types of firms.
2. For the following questions, please apply the Oaxaca decomposition model. The following is the wage equation in the labor market.
(Assume that all coefficients are significant at 1% significance level)
(1) Use evidence from the regression estimates to discuss whether this labor market is characterized by racial discrimination (Assume that "white" wages are benchmarks).
(2) Estimate the percentage of wage gap due to racial discrimination after controlling for years of schooling and years of work experience.
(3) What would be the coefficient on "Black" if there was no discrimination?
(4) Assume that all workers have 20 years of schooling and 5 years of work experience. Assuming that white and black workers are perfect substitutes, then what is the threshold value of the discrimination coefficient "d" at which prejudiced businesses will start hiring only white workers?
Both Market A and B have the same demand curve of Qd = 400 - 20 Pd where Pd is the price customers pay and Qd is the quantity demanded.
Imagine there are two polluters of a given substance with the following marginal-abatement cost functions MAC1=200-e(1) and MAC2=300-3e(2) where emissions are measured in tons/year and both MAC1 and MAC2 are measure in $/ton. Draw on a graph MAC1...
monopolies produce where: MARGINAL REVENUE = MARGINAL COST
What is the present value of growth opportunities? or P/E ratios the price is at a point in time while the earnings occur over a period of time. It is, therefore, necessary to specify whether the earnings are for the trailing twelve month period (..
"K-12 and NCLB" Please respond to the following: Analyze the proposals for reform in the current K-12 system and determine which single proposal would be the most likely to succeed. Explain your rationale.
Explain how much would she need to make in revenues to earn positive accounting profits. If a firm makes positive economic profit it means that the firm earns normal profit.
Describe the benefits and costs associated with each type of externality. What happens to the Supply and/or Demand curve.
Compute the trucks net book value at the end of its third year of use under each depreciation method.
Explain the nation will move toward an international monetary system or fixed exchange rates in the future.
Discuss some obstacles to successful international economic rule coordination in terms of current global economic and political policies and their effect on business conclusion?
A good stock-based mutual fund should earn at least 10% per year over a long period of time. Consider the case of Barney and Lynn, who were overheard gloating (for all to hear) about how well they had done with their mutual fund investment.
Illustrate what does empirical evidence on the U.S. experience with the Earned Income Tax Credit predict will be the effect of the new policy.
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