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Q1. Assume which there is an increase in total factor productivity. In the search model of unemployment, Find out the effects of this on the reservation wage and on the steady state unemployment rate.
Q2. Assume which, in the efficiency wage model, it becomes more difficult for the ?rm to distinguish high-ability workers from low-ability workers in the labor market. Illustrate effects does this have on e(w) and the efficiency wage?
Q3. Assume the peso cost of a dollar was 12.2 pesos/$ in 2005 and 13.9 pesos/$ in 2008. With 2005 as the index year (index=100), if the cost index for Mexico was 125.2 in 2008 and which for the United States was 106.7 in 2008, was the dollar overvalued or undervalued in 2008 according to PPP? Explicate
Decide whether each of following statements is true or false. Then explain why your answer is correct, based on Slutsky decomposition into income and substitution effect.
If MC was $10 per unit, how much would the firm chose to produce? If FC was $200, how much does the firm earn in profits?
If investors dislike of risk grows more intense while the risk-free interest rate is constant, will average expected rates of return rise or fall?
Fed's policies both in terms of the positive also negative consequences of such policies also in relation to the Keynesian also classical theories.
How does this policy involve the supply and demand for loan able funds. What occurs to the equilibrium interest rate.
Illustrate what is the probability that this worker is a college graduate. A non-college graduate. Are educational achievement and employment states independent
Make a table showing the value of marginal product for each screen from the first through the fifth. Illustrate what property is illustrated by the behavior of marginal products.
How does the Federal Reserve lower interest rates, and explain why it wants to keep them low at the present time?
Monopoly is often heralded as the ultimate goal of a firm, to be the only seller in a market. however the picture might not be as rosy as it appears if you actually reach monoply status. Why is that. How monopolies in real world earn huge rates of..
Indicate what the short-run price elasticity of demand for tires is 0.9. If a tire store raise the price of a tire from $50 to $60, by the price elasticity of demand.
Identify the point on the budget constraint this worker has chosen. Explain how much is he working per day.
Suppose that MC=4q, where MC is marginal cost. The perfectly competitive firm maximizes profits by producing 10 units of out output. At what price does it sell these units.
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