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On April 1, 2009, in the middle of a recession, the government of the province of Ontario, Canada increased the provincial minimum wage from $8.75 to $9.50. What will the likely effect of this policy be? Both the leftward shift in the labor demand curve and the higher minimum wage will lead to an increase in the unemployment rate. Low income workers will be better able to survive the recession at the new, higher wage rate. More people will be hired at the higher wage rate offsetting the effects of the recession. The higher wage will increase the supply of labor offsetting the effects of the recession.
What is the equilibrium price of books? What is the equilibrium quantity of books sold? When a price floor of $25 is instituted, compare the Quantity Supply and Quantity Demand. What happens when a price floor of $10 is instituted?
Suppose the US. Unemployment rate at the start of 2010 had been 6% instead of 9.7%. How many more people would have been working (assuming the labor force remained the same)?
Illustrate what would be the insurance premium. Or in other words illustrate what is the expected cost of medical expenses to this population.
At December 31, 2013 and 2012, G Co. had 66,000 shares of common stock and 6,500 shares of 8%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2013 or 2012. Net income for 2..
There are two alternative projects to be chosen: project A has a first cost of $110,000 and an annual operating cost of $60,000. Project B has a first cost of $175,000 and an annual operating cost of $35,000. If the company uses a 3-year recovery per..
Consider a monopolist that produces a good at a constant marginal and average cost of 5$. The market demand is given by p=53-Q. find the deadweight loss and the consumer surplus and the elasticity of demand (absolute value) at the optimal output
A building is expected to generate no cash flows for several years and then generate annual cash flows forever. What is the value of the building if the first annual cash flow is expected in 3 years from today, the first annual cash flow is expected ..
Pete and Paul live in an exchange economy (so we can use the Edge worth-box). The economy has endowment of 10 cheese slices and 10 crackers. Pete has distinguished taste, he likes to eat cheese with cracker, to the extent that he considers them perfe..
q. 1. who were the three adm executives who were sentenced to prison for this little escapade? is there anything unique
Given that your Mexican business invoices in Mexican pesos, you are already aware that a decline in the value of the peso could reduce your dollar cash flows. Yet, according to purchasing power parity, a weak peso should occur only in response to a h..
When an automaker begins offering low cost financing or rebates, others tend to do the same. What two oligopoly models might offer an explanation of this behavior? Fast-food restaurants tend to cluster together. That is, on one corner, there might be..
Farmer Brian has 3 acres of land which he farms efficiently. Each acre can support 20 apple trees. However the 3 acres differ in their ability to support orange trees. what would be the opportunity cost of growing another apple tree?
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