MANKIW: PRINCIPLES OF MICROECONOMICS
8th Edition
ISBN: 9781337801775
Author: Mankiw
Publisher: CENGAGE L
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Chapter 19, Problem 4CQQ
To determine
Example of signaling.
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MANKIW: PRINCIPLES OF MICROECONOMICS
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- Ted leaves his job as a high school math teacher andreturns to school to study the latest developmentsin computer programming, after which he takesa higher-paying job at a software firm. This is anexample ofa. a compensating differential.b. human capital.c. signaling.d. efficiency wagesarrow_forward20. Working in a slaughterhouse is much riskier and more unpleasant than working in a bookstore. As a result, we'd expect a difference in wages between the two jobs. The difference is known as a. an efficiency wage. b. a compensating differential. c. a wage adjustment. d. a minimum wage.arrow_forwardThink of a job that either you or a friend/relative held that paid a wage that you thought was either unfair or inequitable compared to the wages or salaries of other positions within the business or within the wider business community. Answer the following questions in relation to that example. On what basis do you think the wage was set? I.e. What factors influenced how much the organization valued the role? Why did you think it was unfair? If there was an opportunity to be covered by a Union contract/agreement, do you think there would have been an increase/decrease in the wage? If you were the employer, what would cause you to increase the wage for that role? and finally, 5. Do you think that the wages/salaries of the main "jobs" in our society are allocated fairly? Provide an example of a role that you think is highly undervalued and explain why. For example, should CEOs and celebrities earn millions of dollars each year compared to child care workers or stay at home parents who…arrow_forward
- What reason does NOT explain why women may earn less than men in the labor market? A. Occupational choice B. Women tend to be less productive C. Women tend to ask for raises less often D. Having childrenarrow_forwardThere are many reasons why women earn less than men. One is attributed to the education and work environment women seek. Women often look for jobs that have normal hours, good working conditions, and safety. True or False?arrow_forwardSuppose Kara maximizes her profits by hiring workers to produce hand-made soaps. Her soaps sell for $1 each. How should Kara decide on how many workers she should hire? a.Hire workers up to the point when the price of her soaps starts to fall from $1 b.Hire workers up to the point when the total product of all her workers is at its maximum c.Hire up to the point when the wage rate equals to the value of the marginal product of the last worker hired d.Hire up to the point when the marginal product of the last worker hired is equal to zeroarrow_forward
- Which of the following statements proves the existence of wage discrimination? a. Male prison guards earn more on average than female prison guards. b. Professor of economics earn more on average than professors of gender studies. c. Men earn more on average than women. d. All of the above prove the existence of wage discrimination. e. None of the above prove the existence of wage discrimination.arrow_forwardLorna’s Lumberyard is a monopsony. Lorna estimates that at a wage of $10, 100 workers would be willing to work for her. Similarly, at a wage of $12, 200 workers would be willing to work. Her marginal factor cost is: a. $10. b. $14. c. $120. d. $140. e. $240.arrow_forwardWhich of the following statements is correct? a. The Mariel Boatlift study finds that the mass emigration of Cubans lowered the wage of unskilled native workers but not college-educated workers. b. Immigration from the former Soviet Union increased Israeli's population by 15% between 1950 and 1951 and the wages of high-skill natives. c. The May 1968 civil unrest in France lowered the education attainment of affected student cohorts but did not affect their future earnings. d. In a simple signaling model of education, human capital increases as a result of education. e. The repatriates from Algeria to France, due to Algeria's independence from France, increased France's labor force by 2%, but Hunt (1992) finds no significant impact on the French labor markets. Solve with in one hour for upvotearrow_forward
- Give two examples of events that could shift thedemand for labor, and explain why they do soarrow_forwardI need help with A, B, C and D.arrow_forwardWhen is an employer forced to keep the labor cost low? A. When the product demand is inelastic. B. When the employer is in a competitive product market. C. When the rate of unemployment is low. D. When certain skills are essential for production.arrow_forward
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