2206_Problem_Set_1

The labor market model (II): Now we add some parameters to the labor market model: labor supply: Ls =  × w +  labor demand: Ld =  - w The parameters in this setup are , , and . (Notice that parameters are denoted with an overbar, a convention we will maintain throughout the book.) The parameter   represents the number of hours workers would supply to the market even if the wage were zero; it therefore reflects the inherent amount of time people like to work. The parameter  , in contrast, reflects the amount of labor the firm would like to hire if the wage were zero. It might be thought of as some inherent capacity of the firm (perhaps because the firm owns a given amount of land and capital that cannot be altered). (a) What is the economic interpretation of  ? (b) What are the endogenous variables in this model? (c) Solve for the equilibrium of the labor market. That is, solve for the endogenous variables as a function of the parameters of…

Is the rational actor model the best way to understand foreign policy decision-making? Define the model, indicate why it is used, and define any other relevant concepts. Raise an objection to the model. Reply to your objection, or raise a second objection. In your answer, be sure to define “rationality” and discuss important (and relevant) concepts as they relate to the Russian decision to invade Ukraine. Approximately 500- 700 words.

Consider the following model of the factors that influence a person's annual wage: Y = β0 + β1X1 + β2X2 + β3X1X2 + β4X3 + u where Y = annual wage, in dollars X1= years of formal education X2 = age, in years X3 = variable equal to 1 if male, 0 otherwise U = error term Which of the following is the interpretation of β1 alone? The effect of X1 on Y when X2 = 0 The effect of X1 on Y when X2 is at its median value. The effect of X1 on Y, holding all else equal. The effect of X1 on Y when X2 is at its mean value.

Explain the Friedmanian model of NAIRU

A justification for job training programs is that they improve worker productivity. Suppose that you are asked to evaluate whethe r more job training makes workers more productive. However, rather than having data on individual workers, you have access to data on manufacturing firms in Ohio. In particular, for each firm, you have information on hours of job training per worker (training) and number of nondefective items produced per worker hour (output).(iv) If you find a positive correlation between output and training, would you have convincingly established that job training makes workers more productive? Explain.

You have the following equation relating job risk R to wages W: W = .01*R + XB, where XB indicates control for the following confounders: education, job experience, and income. Assume W= annual wages=50,000 A. If the change in R = a 1 in 10,000 higher chance of death in a year, how much more would an individual need to be paid to be willing to assume this risk? B. What is the implied statistical value of a year of life based on this model? C. What do you think would happen to the estimated relationship between R and W if none of the three confounders were included in this model? Explain.

Question There are 136 firms in the industry for the good X above. We will assume that there are no fixed costs in this industry, and that therefore the short run and the long run are equivalent. The table below shows each firm’s production table for the relevant range of output. Assume the firm is a price taker in both the input (labor) and the output (production of X) markets. For the former, assume the wage rate is $1 an hour (this assumption is simply for ease of calculation). The equation of the regression line is P=34X-132. What is the equation of the market supply curve when each firm is producing at least 4 units of X, in the form of X=? x=136((P+132)/34)?In the long run, what do you expect the market price ($26?) and market supply to be (544 or 632?)? Quantity of X Labor Hours total Cost ($) Average total Cost ($) Marginal cost =(10-8X+3X^2) 1 7 7 7 5 2 12 12 6 6 3 21 21 7 13…

For a competitive equilibrium in a two-period model, must there be an equal amount of borrowing and lending?

This is not a writing assignment, this is a multiple-choice question The short article by Richard Works refers to a study conducted by economists  Daron Acemoglu and Pascual Restrepo for the NBER (National Bureau of Economic Research). The study analyzed the effect that industrial robot usage had on labor markets from 1990 to 2007. Based on the summary of the Acemoglu-Restrepo contained in this short article by Richard Works, please answer the question below this text.   Historically we have found that addition of technology to production methods has both assisted labor by making production easier as well as displaced some labor with machines as fewer workers were now needed to get the job done. However, historically, the end result of adding technology was greater production, new demand, economic growth, and new job opportunities for the displaced workers. In recent years, the addition of robotics and artificial intelligence has added a new dimension to the relationship between…

How does ecomonic data relate to the real world of business in relation to managerial economics?

What do you understand by the concepts of intra  temporal choice models in Managerial Economics? This question was not addressed in the answer provided

Skill Circle Model Assume a firm incurs overall labor costs of $22 per hour- which includes wages and training costs. Unit training costs equals $160/h and the wage equals $20/h. How many firms are there?

Consider the following two-period model of dynamically efficient extraction of a non-renewable natural resource. The constant social marginal cost of extraction is 40 in each period and the total stock of the resource is Q = 300 units. Moreover, the social marginal beneÖt is MB(Qt) = 200 Qt, where Qt is the quantity of resource extracted in period t, for t = 0; 1. The discount factor is 0:8.(a)  What is the efficient quantity of resources extracted in each period? Provide a graphical representation of the solution. (b)  What is the marginal user cost (or scarcity rent) of the resource in each period? (c)  Suppose that there is a market to trade the resource. What is the equilibrium price corresponding to each period? Justify the answer. (d)  Suppose that it is now expected that because of an extraction technol- ogy improvement, while the Örst period marginal cost of extraction will still remain MXC1 = 40, the second period one will now de- crease to MXC2 = 20. Answer the previous…

Please provide answer with explanation to question 8

In the Melitz (2003) model gains from trade only increase producer rents (make firms more profitable).  True  False

please answer the following questions based on marcroeconomic

Write short-notes on the following: Stopler-samuelson model Rybczynski Theorem(RT) H-O theorem

Consider the following model of a competitive labour market where both firms and workers have perfect foresight and symmetric information about the price level (that is, no misperceptions). Firms' technology is given by the production function    y = a N ½  (production function)    where a is a positive constant representing total productivity, N is employment and the elasticity of production to employed labour is 1/2. The government requires firms to pay pension contributions to the fiscal authority: the contribution is a small fraction x of the wage paid to each employed worker. Therefore, firms profits equal    P y - W N - x W N    and they are maximized taking the price level P, the nominal wage W, and the pension contribution rate x as given. Labour supply is given by:    W = P b N    where b is a positive constant. Answer all the following questions. a) Derive the labour demand schedule by solving the profit maximization problem of firms.

In the analysis of any economic phenomenon, a)spatio-temporal perspective is needed. b)there is a need for a perspective that takes into account the whole and piece relationship. c)there is a need for a historical perspective d)there is a need for static analysis with only one main determinant factor.

A justification for job training programs is that they improve worker productivity. Suppose that you are asked to evaluate whethe r more job training makes workers more productive. However, rather than having data on individual workers, you have access to data on manufacturing firms in Ohio. In particular, for each firm, you have information on hours of job training per worker (training) and number of nondefective items produced per worker hour (output).(i) Carefully state the ceteris paribus thought experiment underlying this policy question.(ii) Does it seem likely that a firm’s decision to train its workers will be independent of worker characteristics? What are some of those measurable and unmeasurable worker characteristics?(iii) Name a factor other than worker characteristics that can affect worker productivity.(iv) If you find a positive correlation between output and training, would you have convincingly established that job training makes workers more productive? Explain.

The question is intermediate microeconomics