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Hiring workers An employer needs to attract a high skilled worker but does not wish to spend time and money on recruitment processes. She selects the first worker who can prove they were employed throughout the last five years. The employer believes that a high skilled worker has a 90% chance to have a job in any given year; a low skilled worker is believed to have a 50% chance to have a job in any given year. Further, the employer believes that 70% of all applicants are low skilled workers; the remainder are high skilled. Finally, assume there are 10,000 applicants. a) What is the probability that the employer will hire a high skilled worker? b) Argue why that probability will be very similar if the employer believes in the 'hot-hand' effect?
What are the highest and lowest payments from the writer that the bookkeeper farmer team will accept for the 6th day?
Give a definition of Pareto Optimal Allocation in this economy. Find out all Pareto optimal allocations and graph them in the Edge worth Box and also describe what is the theory of Second Best? Prove the theorem by using a diagram.
Explain what the Durbin-Watson statistic from regression indicates and Plot the residuals against time and comment on whether there is a seasonal pattern.
What price will consumers pay after the tax is levied and what proportion of the tax will be paid by the suppliers of Martin guitars?
Based on their public statements, many policy makers would support government regulation of oil markets in order to compensate for the exhaustibility of oil as a resource. Is this reasonable from an economic stand point.
Purpose of this course is to improve your economic decision making and increase your productivity as an employee or entrepreneur.
Professional football teams sometimes charter airplanes to take them to their away games. Would you feel safer on a United Air Lines plane that had been chartered by the Washington Redskins than on a regularly scheduled United Air Lines flight
You appoint an intern from Southern University to help you examine your production process, and she uses your historical cost records to estimate that your total cost function is C(Q) = 100 + 2Q + 3Q2.
How is net national product (NNP) calculated a.Saving is subtracted from the total income of a nation's citizens. b.Saving is subtracted from the total income of a nation's permanent residents. c. Depreciation losses are subtracted from the total ..
Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..
A profit-maximizing monopolist is currently producing 500 units. Its marginal cost is equal to $10, and its price is equal to $20. The monopolist should a. decrease output and increase price if marginal revenue is equal to $5 b.decrease output and ..
Suppose you are the Chief Economist of Antitrust Division of the Department of Justice. There is a single manufacturer of streaming video services that has a patent on technology so that no one else can give the service.
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