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Q1. In 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?
Q2. In this forum we discuss the different arguments that are made in favor of international trade protectionism and the important role of the "politics of protectionism". We have learned in previous chapters that trade protectionism "distorts" the benefits and costs to the nation.
Within the context of the following discuss the following:
The politics of production versus employment: How does this political argument continue to influence our national discussion on NAFTA (North American Free Trade Agreement)
Is the US solar industry an "infant industry" that requires protection from Chinese government subsidies?
The equilibrium quantity increase or decrease depends on Demand
One day you realize you're tired of smelling like refried beans all the time and begin thinking about starting your own business. After doing some investigation you decide to spend 15 hours per week running a photocopy service in your dorm.
Under oligopoly if one firm in an industry significantly increases advertising expenditures in order to capture a greater market share, it is most likely that other firms in that industry.
Explain what occurs when a new technology makes another one obsolete in terms of economic profit?
Expectations and consumer confidence are important in determining fluctuations in aggregate spending. In your opinion, what is the present status of consumer confidence.
What combination of T and M will you choose? Suppose that the price of day trip rises to $80. How will this change your decision making?
If most businesses in an industry are earning a 13 percent rate of return on their assets, but your firm is earning 23 percent what is your rate of economic profit
On one hand, the WTO's role in international trade is becoming more significant. On the other hand, its verdict on the Brazil's Embraer versus Canada's Bombardier case did not seem to solve the problem.
The overall effectiveness of the organ procurement system in the United States. What are its strengths and weaknesses.
A business cycle fact is that real wages are pro-cyclical. Using the classical labour market as we have all semester, show and explain how the classical economists explained this business cycle fact.
Study by the National Park Service revealed that 50 percent of vacationers going to the Rocky Mountain region visited Yellowstone Park, 40 percent visit the Tetons, and 35 percent visit both.
What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution
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