Relative Home Unit Labor Requirement (aLi) Foreign Unit Labor Requirement (a*Li) Good Home Productivity Advantage (a Li/aLi) 10 10 Apples 40 Bananas 3 12 4. Caviar 12 2. Dates 12 6. 0.75 Enchiladas Given the information above in the context of a more than two good Ricardian model and the fact that the relative home wage was 4 and the nominal foreign wage was $3, what would be the world relative price of bananas be with world equilibrium in the labor market? A. $3 B. $4 C. $5 D. $12 E. None of the above.
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- Labour Economics Question The direct cost of a training module to be taken by an employee is $5000 and the opportunity cost involved is $7000. The expected incremental earnings to be received by the employee in the first 5 years are $3000, $3500, $4000, $4500 and $5000, respectively. Assuming the interest rate is 10%. Based on the concept of net present value, should the employee pursue this training module? Show all steps of calculations. Why opportunity cost not combine to same direct cost at calculated NPV?Calculate GNP at Factor cost using given information:- Compensation to employees= $1200 Operating surplus = $700 Mixed income of the self employed = $60 Net factor income to abroad = $40 Consumption of fixed capital = $77If 42 percent of all people working in the UnitedStates are baby boomers, how many were working in2008? If 15 percent of the baby boomers retire in 10years, how many jobs will this represent from 2008employment? Use employment information from thelesson to make the calculations.
- Frank is lending $1,000 to Sarah for two years. Frank and Sarah agree that Frank should earn a real return of 4 percent per year. Instructions: Enter your responses as whole numbers. a. The CPI (times 100) is 100 at the time that Frank makes the loan. It is expected to be 109 in one year and 118.8 in two years. What nominal rate of interest should Frank charge Sarah? The nominal rate of interest charged should be %. b. Suppose Frank and Sarah are unsure about what the CPI will be in two years. How should Frank index Sarah's annual repayments to ensure that he gets an annual 4 percent rate of return? Frank should charge Sarah % (Click to select) more than equal to less than the inflation rate.In 1972 the maximum earnings of a worker subject to Social Security tax (SST) was $9,000. The maximum earnings subject to SST in 2016 is $118,500. Whatcompound annual increase has been experienced over this 44-year period of time? How does it compare with a 3% annual increase in the consumer price index over the same period of time?Consider a family where both the husband and wife work, and assume each spouse ha three more years to work (after the current year) before retirement. Following Table indicates the projected combined salary over the remaining working years if they each stay with their currentemployers. It also shows the combined salary they can expect if they relocate and change employers. Year Combined salaryat Current Job Combined salaryat New Job 1 $80,000 $83,000 2 $82,000 $87,000 3 $85,000 $92,000 Suppose the total cost of moving, including direct expenses, foregone earnings, and psychic costs(costs of leaving friends, coworkers, familiar surroundings, etc.) total $10,000. Assume all costs areincurred during the current year (year 0). a. If the discount rate is equal to the market interest rate of 6%, is this investment in mobility worthwhile?
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