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Explain and illustrate what happens to an individual's reservation wage rate if we introduce fixed time costs of participation in the labor market (e.g. long commute)? Assume initially that there are no fixed time costs of participating in the labor market.
In an agency relationship, someone agrees to perform a task for, and under the control of, someone else (the principal). An agent is the person who is acting on behalf of the principal in an agency relationship. Identify three (3) types of agency und..
Every worker sees a Social Security (FICA) tax taken out of his or her paycheck. The nominal tax rate on workers is 7.65 percent. But there's a catch: only wages below a legislated ceiling are taxable. In 2014, the table wage ceiling was $117,000. Wh..
What market structure prevailed before deregulation of the airline industry in south Africa
Suppose you deposit $5000 in currency into your checking account at a branch of Wells Fargo, which we will assume has no excess reserves at the time you make your deposit. Also assume that the required reserves ratio is 25 percent. Use a T-account ta..
What is the possible risk of a government printing and producing more money in circulation than what is needed?
A 911 emergency response service needs operators who are bilingual in English and Spanish. A few applicants of Spanish origin are rejected due to poor English-speaking skills. They file a complaint on the grounds of discrimination based on nationalit..
The Tragedy of the Commons can be corrected by...
School has issued a new bond, facedd at $1000, maturing in 20 years. It pays interest semi annually, at 8% nominal. The nterest rate of similar School bonds has decreased to 6%. What is the current market value of the School bond.
A monopoly firm enjoys a great deal of market power. Is the government right in intervening in free markets to limit monopolies? Explain.
What is the Nash equilibrium of this pricing game? Is there a better solution to this game? If so, what mechanisms would you advise General Electric or Westington to put in place to increase the likelihood that both parties agree to the better soluti..
Cost is a big issue with every company, and changing technology is the biggest cost for most companies, how your company was able to cope with this problem and maintain the level of profit in a very competitive market?
Spending by the consumer sector is the driving force in the US economic system. Although the business and government sectors make a considerable contribution to the success of the economy, it is the spending by the consumer or household sector of the..
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