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In the signaling model, assume high school graduates are paid a stream of income whose present value is $200,000. College graduates are paid a stream of income whose present value is X. College education costs higher-productivity workers $50,000 and lower-productivity workers $150,000. What value of X will cause higher-productivity workers to go to college and lower-productivity workers to not go to college?
Describe how the topic you select relates to the growth of United State banking overseas. Include data how your topic contributes to interdependence among economies and financial markets, and to global financial stability.
Illustrate what relative amounts of capital and labor will be employed to maximize output.
Think about a product that you have purchased recently (e.g. soda, diapers, takeout meals, milk, shoes, manicure/pedicure, video game, etc.).
When and why were the inflation and unemployment rates negatively correlated? When and why were the inflation and unemployment rates positively correlated?
Determine wHich of the following is example of an adverse selection problem and which is a moral hazard incentive problem?
our friend wants to pay off her two debts in a single payment. The first debt is $570 due in 8 months, and the second is $1,380 due 1 1/2 in years. What will that single payment be if she wants to make it at the end of 1 year given a compound inter..
Illustrate what is the number of kilowatt hours of electricity produced and what is the price that the company will charge.
Suppose the real rate of growth of wages subject to Social Security taxes is expected to average 1% per year during the next 40 years. Assume that the Social Security tax rate remains constant, and prove that the average return on Social Security ..
How does the free rider problem explain why telephone companies are usually successful in getting permission to raise their rates?
You only need to refer to the 3 or 4 papers that you think are the most important. Use economics journals for your references, for example, Journal of Health Economics, Rand Journal, American Economic Review, etc.
Consider a market where supply and demand are given Qx^s=-10 +Px and Qx^d= 56-2Px. Suppose the government imposes a price floor of $25, and agrees to purchase any and all units concumers do not buy at the floor price of $235 per unit. a. Determine..
In most developing countries, there are long lines of taxis at airports, and these taxis often wait two or three hours. Illustrate what does this tell you about the price in the market. Carefully Explain with supply and demand analysis.
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