00 5 96 Discrimination can cause a vicious circle because O firms then become dependent on underpaid workers. once an illegal activity is done, it is easier to keep committing it. O employees learn to discriminate from their bosses. O the lack of high wages reduces the incentives to invest in human capital. Topic 2 (1).docx Topic 2 (2).doCx D Unit 7-Chapter 1..xlsx Unit 7- Chapter 1...xlsx 73°F %23 SU prt sc delete 144 AA backspace -> 6 7. D. () H.

00 5 96 Discrimination can cause a vicious circle because O firms then become dependent on underpaid workers. once an illegal activity is done, it is easier to keep committing it. O employees learn to discriminate from their bosses. O the lack of high wages reduces the incentives to invest in human capital. Topic 2 (1).docx Topic 2 (2).doCx D Unit 7-Chapter 1..xlsx Unit 7- Chapter 1...xlsx 73°F %23 SU prt sc delete 144 AA backspace -> 6 7. D. () H.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter8: Market Failure

Section: Chapter Questions

Problem 9P

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assume there are two types of workers, low- and high-ability, andlet 0 = 0.25 be the proportion of high-ability workers in the population. Assume their marginalproductivity and, therefore, their wages are wh = $20 and wl = $16, and that both types canuse college education to signal high ability. The cost of college education for low-ability workersis cl = $5 whereas the cost for high-ability workers is ch = $2. Consider the wage for both types of workers and the high-ability workers’ college cost, ch. For which values of 0 (the proportion of high-ability workers in the population) do the high-ability workers prefer the separating equilibrium over the pooling equilibrium? (a) Any 0 > 1/2(b) Any 0 < 1/2 (c) Any 0 < 3/4(d) Only when 0 = 1
3 Imagine that the wage-schooling locus is given by w(s)=s^(1/3). What will be the optimal level of education for an individual to take if next period’s earnings in any given time are worth 95% of current earnings for that individual? ---- HINT: the answer is s=20/57. I need step by step solution
Determine whether each of thefollowing would increase or decrease the opportunity costs formothers who choose not to work outside the home. Explain youranswers.a. Higher levels of education for womenb. Higher unemployment rates for womenc. Higher average pay levels for womend. Lower demand for labor in industries that traditionally employlarge numbers of women
assume there are two types of workers, low- and high-ability, and let 0 = 0.25 be the proportion of high-ability workers in the population. Assume their marginal productivity and, therefore, their wages are wh = $20 and wl = $16, and that both types can use college education to signal high ability. The cost of college education for low-ability workers is cl = $5 whereas the cost for high-ability workers is ch = $2. How much do firms pay to each worker type when they cannot differentiate them? (a) wh = $20 and wl = $16 (b) wh = $2 and wl = $5 (c) w = $17 (d) w = $18
14.ASsume the labor force is made up of 40% women and 60% men. If 40% of all manufacturing jobsare held by women and 90% of the highest-paying management and executive level jobs inManufatacturing are held by men, then, with respect to the manufacturing sector, it can be said that: multiple choiceO.a. there is no horizontal occupational segregation but there is vertical occupational segregation. O.b. there is both horizontal and vertical occupational segregation.O.c. there is no sex-based discrimination in entry-level By solving it for 'r' through hit and trial method, the required interest rate can be found.positions but there is sex-based discriminationin management level positions.O.d. there is no sex-based discrimination in management positions but there is sex-baseddiscrimination in executive level positions.
No written by hand solution 2. Fringe benefits: a. As you might have suspected, employee nonwage (fringe) benefits make up a much larger percentage of labor costs in the United States today than they did a few generations ago (refer to Table 3.1 in the textbook). Fringe benefits as a form of labor compensation is also very unique to the U.S. and other developed nations. Do you think that the growing fringe benefit share of labor costs has made the level of employment more responsive or less responsive to changes in labor demand over the ups and downs in the overall economy? In other words, has it given the employers of labor more or less flexibility as they try to adapt to continuously changing economic conditions?
Paying soldiers more who are in combat zones is an example of? O wage discrimination O compensating differentials O human capital effect O segmented market effect 111
16) If labour market discrimination crowds women into a limited number ofoccupations so that the number of occupations available to men increases, then(a) the wages of men will be lower, but the marginal productivity of men will be higherthan it otherwise would be.(b) both the wages and the marginal productivity of men will be higher than theyotherwise would be.(c) both the wages and the marginal productivity of men will be lower than theyotherwise would be.(d) wages of men will be higher, but the marginal productivity of men will be lowerthan it otherwise would be.
Suppose a worker’s skill is captured by his efficiency units of labor. The distribution of efficiency units in the population is such that worker 1 has one efficiency unit, worker 2 has two efficiency units, and so on. There are 100 workers in the population. In deciding whether to migrate to the United States, these workers compare their weekly earnings at home ( w0) with their potential earnings in the United States (w1).The wage-skills relationship in each of the two countries is given byw0 = 700 + 0.5sandw1 = 670 + swhere s is the number of efficiency units the worker possesses.a. Assume there are no migration costs. What is the average number of efficiency units among immigrants? Is the immigrant flow positively or negatively selected?b. Suppose it costs $10 to migrate to the United States. What is the average number of efficiency units among immigrants? Is the immigrant flow positively or negatively selected?
There are 50 workers in the economy in which all workers must choose to work a safe or a risky job. When it comes to accepting a risky job, Worker 1’s reservation price is $5; worker 2’s reservation price is $6, worker 3's reservation wage is $7, and so on. Assume there are exactly 12 risky jobs. (a) What is the equilibrium wage differential between safe and risky jobs? Which workers will be employed at the risky firm? (b) Suppose now that an advertising campaign, paid for by the employers who offer risky jobs, stresses the excitement associated with “the thrill of injury,” and this campaign changes the attitudes of the work force toward being employed in a risky job. Worker 1 now has a reservation price of $1, worker 2’s reservation price is $2, and so on. There are still only 12 risky jobs. What is the new equilibrium wage differential? c) What is the maximum the firm should be willing to pay for its ad campaign?
Imagine that the wage-schooling locus is given by w(s)=s^(1/3). What will be the optimal level of education for an individual to take if next period’s earnings in any given time are worth 95% of current earnings for that individual? Answer is s=20/57 I need step by step calculations
Among full-time U.S. workers, white women earnabout _________ percent less than white men, andblack men earn about _________ percent less thanwhite men.a. 5; 20b. 5; 40c. 20; 20d. 20; 40