Principles of Economics (MindTap Course List)
8th Edition
ISBN: 9781305585126
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 19, Problem 7PA
Subpart (a):
To determine
Ability, effort, and chance.
Subpart (b):
To determine
Ability, effort, and chance.
Subpart (c):
To determine
Ability, effort, and chance.
Subpart (d):
To determine
Ability, effort, and chance.
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Some people claim that degrees in liberal arts do not really train students for the job market. Their education provides little training value for their future jobs. According to the theory of signaling, why are such “useless” degrees useful in the job market?
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The fact that students want to complete such degrees signals that they care about the knowledge they accumulate
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Chapter 19 Solutions
Principles of Economics (MindTap Course List)
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- Give typing answer with explanation and conclusion When a company only pays workers .50 an hour why would this be acceptable according to Martin Wolf’s theory?arrow_forwarda. Why would a firm ever choose to offer profit-sharing to its employees in place of paying piece rates? b. Describe the free-riding problem in a profit-sharing compensation scheme. How might the workers of a firm “solve” the free-riding problem?arrow_forwardThis question is under the Microeconomic Analysis topic. (a) How does economics describe or define discrimination in general? (b) What are some typical costs that would come about in an economy from labor market discrimination?arrow_forward
- Yvette currently earns a wage of $12.00 per hour; in other words, the amount of her paycheck each week is $12.00 per hour times the number of hours she works. Suppose the price of milk is $2.50 per gallon; in this case, Yvette's wage, in terms of the amount of milk she can buy with her paycheck, is gallons of milk per hour. When workers and firms negotiate compensation packages, they have expectations about the price level (and changes in the price level) and agree on a wage with those expectations in mind. If the price level turns out to be lower than expected, a worker's wage is than both the worker and employer expected when they agreed to the wage. Yvette and her employer both expected inflation to be 4% between 2012 and 2013, so they agreed, in a two-year contract, that she would earn $12.00 per hour in 2012 and $12.48 per hour in 2013. However, suppose inflation between 2012 and 2013 actually turned out to be 2%, not 4%. For example, suppose the…arrow_forwardShawn's boss pays him $5/hr more than what other people in similar jobs make and because of this he works a lot harder. What is this an example of? menu costing efficiency wages opportunity costing flexible wagesarrow_forwardWhen the supply curve is upward sloping, by practicing the minimum wage law a surplus is created in the economy. What happens when the labour supply curve is vertical? Does it still have a surplus? Surplus of what? Also, when a minimum wage law is imposed in the labour market, despite of the effects in the economy, why do the producers argue for a wage rise? Draw relevant diagram and discuss all the points raised above.!arrow_forward
- Please refer to the images below and then answer the question. Refer to 'Pay in the Military'. How has the military responded to a shortage of skilled military personnel in the past? (Show any two steps being taken).arrow_forwardAccording to the income effect, if an employee receives higher wages, ceteris paribus, it leads to fewer hours worked. True O False Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.arrow_forwardAccording to the Economics Policy Institute (Mishel and Wolfe, 2019) CEO pay has grown 940% since 1978 while the compensation of the average worker has only risen 12%. While you can easily find sources that provide statistics that conflict with these numbers, you would be hard pressed to find any credible source that refutes the idea that the rate of pay of CEO’s and other upper-level managers has not dramatically increased relative to an organization’s lower-level employees in just about any 10 or more year period over the past 60 years. In the world of Adam Smith, the “invisible hand” of the free market capitalistic model would address inequities/out of balances. Are the forces represented by the “invisible hand” working? Why or why not? Is there an ethical dimension to the discussion of upper-level manager compensation? Why or why not? How does (or does it?) levels of pay of upper management impact the rest of us commoners?arrow_forward
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