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Read the article "The effects of minimum wages on employment" and answer the questions below:
a) Through which channels does a binding minimum wage affect employment? Illustrate this effect with a diagram.
b) According to recent research what are the employment effects of minimum wages?
One person-day of labor produces: China 9 rice 3 computers India 4 rice 2 computers a) Does any country have an absolute advantage If so, which one b) For India, what is the resource (or opportunity) cost of rice (R) in terms of computers (C), and C ..
Two consumers, Consumer 1 and 2, purchase the same product. Compute the prices that should be charged to each customer if the seller is able to use first degree price discrimination.
If government imposes on the firms in a polluting industry penalties(taxes) that exceed the actual value of the damages done by the pollution, the result is an inefficient and unfair imposition of costs in those firms and on the consumers of their..
Explain how would the number of workers hired (variable input) change. This is a profit maximizing firm, also explain the profit maximization condition the firm uses.
Compute the arc cross-price elasticity of demand among beverage sales and appetizer prices.
1.Give an example of indivisible inputs for your firm. 2.Discuss the characteristics of a perfectly competitivefirm. Does your franchise firm share any of these same traits? Explain.
A 10-year, 10 percent annual coupon $1,000 bond trades at a yield to maturity of 8 percent. The bond has duration of 6.994 years. What is the modified duration of this bond?
According to the American Metal Markets Magazine, the spot market price of U.S. hot rolled steel recently reached $580 per ton. Less than a year ago this same ton of steel was only $260. A number of factors are cited to explain the large price inc..
There is always debate regarding the structure of current income tax system in United State Many opponents of the current system argue that under its current structure,
In a multibank system, an individual bank makes loans only up to the level of its excess reserves, while the whole commercial banking system can lend out money that is a multiple of the original bank's excess reserves. Why is there this difference..
Indicate how each of the following changes would influence the incentive of a decision maker to undertake the action described.
Suppose last year's real GDP was $10,000 billion, this year's nominal GDP is $13,800 billion, and GDP-deflator for this year is 110. Determine the growth rate of real GDP?
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