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QUESTION 1
i) Use a simple human capital model to explain the rationale for undertaking higher education
ii) Why do some people vary significantly in the amounts of human capital which they acquire?
iii) After graduating from high school, Mehvin is thinking about enrolling in a oneyear course in e-commerce. The direct costs of the course are $4,800. The potential salary that is forgone during a year amounts to $2,200. Upon completion of the course, he plans to work at Skynet Corporation for three years and then retire. The incremental income he anticipates because of his training is $3500, $4,000 and $4,500 for the three years he intends to work. The relevant interest rate is 10%. Is the decision to enroll in the data processing course rational? Discuss
QUESTION 2
i) How is the "pure" union wage advantage defined? If in a given labour market the wage rate would be $5 without a union and $7 with a union, then what is the pure union wage advantage?
ii) Briefly discuss the economic arguments for and against of trade unions
iii) Explain how, and in what direction, each of the following may cause the "measured" union wage advantage to vary from the pure advantage
What is the Infant Industry argument? Several governments seek to protect involving industries by premature competition. Infant industries have potential comparative benefit b
How do i come up with a project based on the above topic
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In June, Leslie wins a cash prize of $2,000. She plans to use this money to pay her tuition bill in September. Leslie puts this money in a savings a savings account because her mai
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