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What are the effects of placing a universal binding minimum wage on a labor market that is otherwise perfectly competitive? What are the effects if the minimum wage is not universal (that is if there is a sector of the labor market not covered by the minimum wage)? In both cases briefly discuss potential efficiency effects. Consider the CBO study on the minimum wage (posted on D2L). Provide a brief argument for or against raising the minimum wage to $10.10 per hour based on efficiency vs. equity effects.
In order to maximize net benefits, the managerial control variable should be used up to the point where:
Which of the following is true about income levels in Western Europe and Latin America before 1700? Average income in Western Europe was higher than that in Latin America.
With regard to global warming policy, describe, in a short paragraph, the importance of: Discounted costs and benefits. Public goods.
Explain how does the price elasticity of demand for corn oil influence the quantity-demanded of corn oil and the Total Revenue earned by sellers of corn oil.
Based on this example, discuss and defend whether or not big countries such as the United States should be worried about what is happening in small countries such as Greece. Elucidate general conclusions from this case that might be applied elsewh..
What are price indexes designed to measure. Outline how they are construed. When GDP and other and other income figures are compared across time periods.
A monopoly is considering selling several units of a homogeneous product as a single package. A typical consumer’s demand for the product is Qd = 120 - 0.25P, and the marginal cost of production is $160. Determine the optimal number of units to put i..
Unlike the 1970s, when world oil prices skyrocketed,P the 1980s were a decade of falling oil prices. From 1981 to 1986 the price of a barrel of crude oil fell from $42 to$15. Consequently the exploration for and production of oil in the world declin..
Discuss current and recent interest rates. Some possible discussion topics are the following: What has been the trend of interest rates over the last 1 mth, 6mths, 12 mths, 24 mths, 5 years? What has the FED been doing with interest rates? How does t..
What are the limits of the study? Write at least one paragraph. There are two deliverables for this Case Problem, the Excel spreadsheet and the written description/explanation. Please submit both of them electronically via the dropbox.
When a government or corporation sells bonds to raise money, it can do so in one of two ways. It can target a certain amount to raise or it can target a certain amount to pay back at the end of the bond (this is simplified for the purpose of the prob..
Suppose that aggregate demand increases by $1 billion, what would happen to equilibrium RGDP? Explain. When the price level is falling, we experience deflation. This occurred in Japan not to long ago. What do you believe causes deflation? How might i..
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