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Mike currently earns $20,000 as an unskilled labourer. Presume that by taking courses full-time at a community college for one year, Mike can earn his associate’s degree and qualify for a more skilled job paying $23,000 that is guaranteed to last for ten years (after which Mike would retire). Suppose the cost of tuition and books at the community college for one year is $2,000 and that the current interest rate is six percent. Is this a good investment?
What is the discounted present value of the benefit of the additional education (e.g., from Mike earning his associate’s degree)?
Which is greater, the value of the costs or the value of the benefits?
What is the discounted present value of the cost of the additional education?
If Mike were older, would he be more or less likely to obtain the additional education?
Explain the dissimilarity between the human capital and signalling theories of education. Identify whether each of the following raises labor demand or lowers labor supply (includes slowing labor supply growth) in labor market X.
Require a lot of calculations in STATA
select a product that you use frequently. research the company that produces this product as well as the general
Incorporate this modified definition of YD into the private savings function, and identify explicitly the impact of a change in TR on private savings.
Does the Law of Demand hold for Natty Light? Prove using calculus.Is Natty Light a normal or an inferior good? Prove using calculus.
VetPharm has historically produced and sold drugs for animals; however, one of its products developed for animal use has recently been approved for a similar use in humans. Market research has revealed that that at the current per dose price, ..
assume that you are a business owner or business professional in a company and industry of your choice responsible for
How does the amount of unemployment created by an increase in the minimum wage depend on the elasticity of labor demand Do you think an increase in the minimum wage will have a greater unemployment effect in the fast-food industry
Total cost and total variable cost are parallel, yet average total cost and average variable cost are not parallel. Demonstrate mathematically that ATC and AVC are not parallel.
a city that operates automobile parking facilities is evaluating a proposal to erect and operate a structure for
Take a stand on whether or not it would be easier for the Federal Reserve to expand the supply of money in a period of prosperity versus in a period of recession.
Which of the following is true for perfect competition but not true for monopolistic competition and monopoly. a. MC = MR. b. P = MC. c. Positive long run profits. d. Both b and c.2. Profit margin equals: a. marginal cost minus marginal revenue. b. a..
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