Q: Are minimum-wage laws a better explanation forstructural unemployment among teenagers or…
A: Minimum wage laws set the lowest (min) level of wages or the least wages/salaries that must be paid…
Q: What does the assumption of market clearing imply?(Explain) and How applicable is this assumption to…
A: Assumption of market clearing implies that at a particular price, quantity demanded equals quantity…
Q: Cindy gains utility from consumption C and leisure L. The most leisure she can consume in any given…
A: Labor is an important factor of production with which large amounts of output can be produced. The…
Q: Using the wage function: wage = 2.59 + 0.28educ + 0.29exper - 0.13exper + 0.002educ * ex Which of…
A: Answer to the question is as under:
Q: Consider 5 workers who care about their consumption and continuous job satisfaction J. Their…
A: To solve this question we have taken Marginal rate of substitution as MRS and Marginal rate of…
Q: 21. Let U=x²+y2 is the utility function of a worker who has 10 hours that to be allocated between…
A: Given information U=X2+Y2 Here X= leisure hour Y= consumption Price of consumption=1 W=1
Q: Discuss how total earnings are determined for both piece-rate and time-rate workers
A: Piece rate and time rate are the two method of wage payment.
Q: Answer the following questions according to Hecksher Ohlin theorem. a) Explain if factor price…
A: The factor-price equalisation theorem is a very important corollary derived from the Heckscher-Ohlin…
Q: Assume in a two-sector economy made up of agriculture and manufacturing, the government introduces a…
A: If the government imposes a subsidy on labour employed in the manufacturing sector, this reduces the…
Q: What is meant by returns to factor? State 3 phrases of the law of variable proportion.
A: Factor: These are the resources used for producing goods and services.
Q: Teachers can work up to 180 days in a school year, and they earn the wage w for each day that they…
A: Since you have asked multiple questions, we will answer the first question for you. If you want any…
Q: If the market value of firm A is $2.2 million and the replacement cost of capital is $605,500, find…
A: Given The market value of firm A=$2.2 million Replacement cost of capital =$605,500 The formula for…
Q: MCQ 41 In a competitive market, in which firms are price takers, the marginal revenue product of…
A: In ta perfect competitive market, the firms are price takers.
Q: The marginal income function is: (Hint. Income = Demand x Price) %3D -0.02p 0.18pe -0.18e-0.02p
A: The law of demand establishes that the price of goods and its quantity demanded are negatively…
Q: n flexibility (horizontal axis) and wage (vertical axis), isoprofit curves slope downward because…
A:
Q: Eric earns a base salary of $50,000 as a shipwreck diver and is subject to the following…
A: Marginal tax rate on drive:Eric already earns the $50,000, so an extra earning income $5,000 above…
Q: the verizon publishing company pays its salespeople a weekly salary plus a 2% commission on all net…
A: net sales over $5,000 Salary +2% commission for sale over $ 5000 Employee: Rice Gross sales:…
Q: Q5: Given the following market model: Qd %3D а — b(Р + tP) Qs = -c + dp Where t = Ad valorem tax…
A: Given: Qd=a-b(P+tP) Qs=-c+dp t=ad valorem tax To find: P*
Q: If an employer wants to give his employees a cost of living adjustment, then he/she is likely to:…
A: The cost of living is the sum of money necessary to maintain a certain standard of living through…
Q: Explain the third stage of law of variable proportion
A: Law of variable proportion state that as we increase quantity of only one input keeping other input…
Q: True or false: Equilibrium employment is given by the intersection of the wage and the profit curves
A: Wages represent the money paid to the labor for hiring their services whereas profit curves…
Q: Laura earns a base salary of $50,000 as an event planner and is subject to the following…
A: 1) Marginal tax rate = 50%Laura was earning a basic salary of $50,000 as an event planner and when…
Q: Determine how the following affect the slope of the output supply curve and explain your results.…
A: In economics, inter-temporal substitution effect explains the impact of changes in the expected…
Q: EF-a material handling company-pays each of its salespersons a base salary plus a percentage of…
A: Given that, reimbursement cost=$0.35 each salesperson drives = 100 miles total days = 240 per miles…
Q: Consider the following labor-leisure choice model. Utility function over.consumption (C) and leisure…
A: Given; Utility function; U(C,L)=C2/5L1/5Total hours; H= 40Labor hours; Ns=H-LNon-Labor income;…
Q: Passive factor of production is
A: To find : Which is passive factor of production.
Q: A. Draw a potential income constraint such that if T = 5, this person will not participate in the…
A: In the mentioned question we have been asked about the different utility function and leisure - work…
Q: Process A Output : x = 3; y = 1 Input: L = 2; K = 1 Process B Output : x = 2; y = 1 Input: L =…
A: 1. In equilibrium, what are the relative prices of x, y, L and K?Ans. Process A:-When distribution…
Q: Non-backward-bending labor supply curve. Consider an economy populated by 100 individuals who have…
A: Substitution effect: When one thing is substitute to another then it is known as substitution…
Q: 1. Suppose a worker can survive by daily consumption of $40 value of commodities as determined by…
A: Since you have posted multiple subparts as per the guidelines we can solve only one question per…
Q: 1. b) Explain why factor prices are equalised, both in relative and absolute terms, according to…
A: Factor price Equalisation Factor price equalization is the theory of factor prices in which, when…
Q: Complete the table below if the company's goods is $2. LY = AF(K, L) | Y = AF(K, L) Value of MPL if…
A: Marginal product is the change in Y when L changes by 1 unit. A firm maximizes profit by hiring…
Q: 1. Using the data, the following equation was obtained by OLS: log(salary) = 4.32 + 0.600 log(sales)…
A: Answer-
Q: Describe the Adjusted-discount method?
A: An estimate of the present cash value for high risk investments is called risk-adjusted discount…
Q: EFI—a material handling company—pays each of its salespersons a base salary plus a percentage of…
A: Given reimbursement rate per mile = $0.35 Daily business miles by a salesperson = 100 miles Total…
Q: Suppose a worker is offered a wage of $5 per hour, plus a fixed payment of $40. What is the equation…
A: Fixed payment = $40 Variable wage = $5 / hour Opportunity set = 40 + 5Q Q is the number of hours he…
Q: What are the factors contributing to The Stolper-Samuelson Theorem’s discrepancies involving factor…
A: The Stolper-Samuelson Theorem states that international trade would raise the returns of the…
Q: How do factor endowments affect personal income? Examine different provisions employed by the…
A: Factor endowment: It refers to the land, labor and capital. Factor endowment helps in the production…
Q: Consider two individuals with endowments of T 5 60 hours (per week) of leisure, nonlabour income of…
A: Given endowments:- T=60 hours per week Wage=$7.50 per hour constraint to work 40 hours per week…
Q: A worker receives CAD 3,000 of lump-sum transfers from the government annually and has 4,160…
A: Given: A worker receives a lump-sum amount of = CAD 3,000 Available hours she has = 4,160 hours per…
Q: Answer the following question according to Hecksher-Ohlin theorem. Explain briefly if factor price…
A: This theory of factor price equalization is the corollary of the Heckscher-Ohlin theory of trade,…
Q: Radha is awake for 100 hours in a week. She is earning Rs.1200 per week by working for 60 hours.…
A: The labor supply, according to conventional economic theories, is the total number of hours…
Q: 1. Suppose Ali receives a wage increase from 200 TL to 400 TL per hour, holding his non-labor income…
A: We will answer the first question since the exact one was not specified. Please submit a new…
Q: Suppose that the government introduces an EITC such that for the first $8,000 in earnings, the…
A: A household will choose the mix of labour, leisure, and income that delivers the highest utility…
Q: 2. Assume that individuals have the utility function over consumption (c) and labor (1) given by U…
A: The utility function measures the preferences of the set of goods and services.
Step by step
Solved in 2 steps
- What are the factors contributing to The Stolper-Samuelson Theorem’s discrepancies involving factor price equalization issues?Q49 In order to maximize profits, a firm needs to determine the quantity of each factor that it will employ, which is dictated by price as well as productivity of the factor. Assume farmer in the Ottawa area named Justin Trudeau has fixed amounts of land and capital finds that total product is 24 for the first worker hired, 32 when two workers are hired, 37 when three are hired, and 40 when four are hired. The farmer's product sells for $3 per unit, and the wage rate is $13 per worker. The marginal revenue product of the second worker is Multiple Choice $9 $15 $24 $8 $14.In flexibility (horizontal axis) and wage (vertical axis), isoprofit curves slope downward because (a) profits increase with the number of workers the firm employs. (b) workers are willing to accept a lower wage in exchange for job flexibility. (c) profits are constant with respect to flexibility. (d) in order to keep profits constant, a higher wage must be offset by the firm saving money by not providing workers with flexibility. Typed and correct answer please. I ll rate
- Q33 In order to maximize profits, a firm needs to determine the quantity of each factor that it will employ, which is dictated by price as well as productivity of the factor. Assume farmer in the Ottawa area named Justin Trudeau has fixed amounts of land and capital and finds that total product is 24 for the first worker hired, 32 when two workers are hired, 37 when three are hired, and 40 when four are hired. Justin Trudeau product sells for $3 per unit, and the wage rate is $13 per worker. The marginal product of the second worker is Multiple Choice 32 14. 8 1 51. b) Explain why factor prices are equalised, both in relative and absolute terms, according to Heckscher-Ohlin-Samuelson. What assumptions are especially needed to ensure this result?discuss the key concepts of the Heckscher-Ohlin Model in factor abundence
- Explain the third stage of law of variable proportionConsider an individual aged 64 who is eligible to collect full social security (public pension) benefits of $6,000 for a year. They have no other income but can work at a weekly wage rate of $600 for a maximum of 52 weeks. Receipt of benefits from the social security program is retirement tested. Specifically, the individual can earn up to $9,000 in annual wage income without a reduction in benefits; however, after $9,000 of earnings, benefits are reduced by 50% for every dollar earned, until the benefits are exhausted. a) Carefully draw and label the budget constraint for this individual. b) Suppose previously there was a retirement test, and then the test is eliminated, i.e., the individual now is allowed to keep all benefits, irrespective of their labour earnings. How would this affect the individual’s labour supply? Question Two David is a 70-year-old accountant. After serving his accounting firm for 45 years, David decides to retire soon. David has great passion for vintage cars…Suppose that the government introduces an EITC such that for the first $8,000 in earnings, the government pays 50¢ per dollar on wages earned. For the next $3,000 of earnings, the credit is held constant at $4,000, and after that point, the credit is reduced at a rate of 20¢ per dollar earned. When the credit reaches zero, there is no additional EITC. Furthermore assume a worker who can work up to 4,000 hours per year at an hourly wage of $10 per hour. 1. The benefit of EITC will disappear at how many hours of leisure? (use just numbers) 2. When the EITC disappears how much does the worker get to consume (do not use $ sign)
- d. Based on both the consumption-leisure optimality condition obtained in previous part (Based on both of the two first-order conditions, construct the consumption-leisure optimality condition) and on the budget constraint, qualitatively sketch two things in a diagram with the real wage on the vertical axis and labor on the horizontal axis. First, the general shape of the relationship between w and n (perfectly vertical, perfectly horizontal, upward-sloping, downward-sloping, or impossible to tell). Second, how changes. in / affect the relationship (shift it outward, shift it inward, or impossible to deter mine). Briefly describe the economics of how you obtained your conclusions.A3 in the McCall partial equilibrium model, if unemployed individual can only live for 10 periods. In each period, she will receive $400 if unemployed. The offered wage is uniformly distributed in the range of [500,1000] 1.what will the reservation wage be in the period 9 if the discount rate is 0.9? 2.what will the reservation wage be in the period 8 if the discount rate is 0.9?True or false: Equilibrium employment is given by the intersection of the wage and the profit curves