EP ECONOMICS,AP EDITION-CONNECT ACCESS
20th Edition
ISBN: 9780021403455
Author: McConnell
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 23, Problem 2RQ
To determine
Reason for immigrate to U.S.
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A software company in Silicon Valley uses programmers (labor) and computers (capital) to produce apps for mobile devices. The firm estimates that when it comes to labor, MPL = 5 apps per month while PL = $1,000 per month. And when it comes to capital, MPC = 8 apps per month while PC = $1,000 per month. If the company wants to maximize its profits, it should: LO16.5 a. Increase labor while decreasing capital. b. Decrease labor while increasing capital. c. Keep the current amounts of capital and labor just as theyĀ are. d. None of the above.
7. LO 2, 4 Suppose that a consumer can earn a
higher wage rate for working overtime. That is,
for the first q hours the consumer works, he or
she receives a real wage rate of w, and for hours
worked more than q he or she receives w, where
W2>W1. Suppose that the consumer pays no
taxes and receives no nonwage income, and he or
she is free to choose hours of work.
(a) Draw the consumer's budget constraint, and
show his or her optimal choice of consump-
tion and leisure
(b) Show that the consumer would never work
hours, or anything very close to q
Explain the intuition behind this.
(c) Determine what
hours.
happens if the overtime
wage rate w2 increases. Explain your results
in terms of income and substitution effects.
You must consider the case of a worker who
initially works overtime, and a worker who
initially does not work overtime.
Figure 9.2, U.S. Labor Market
Figure 9.2 represents the U.S. labor market. Assume that labor and capital are the only factors of
production. Also assume the initial supply schedule of labor is denoted by S, and consists entirely of
native U.S. workers. The demand schedule of labor is denoted by Do
Hourly Wage/S
O
O
18
Select one:
O
12
O
9
So
2
Consider Figure 9.2. Policies that permit Mexican workers to freely migrate to the United States would likely be resisted by:
Sā
a. U.S. capital owners
b. Native U.S. workers
3
Do
6
Quantity of
Labor
c. U.S. capital owners and native U.S. workers
d. Neither U.S. capital owners or native U.S. workers
Chapter 23 Solutions
EP ECONOMICS,AP EDITION-CONNECT ACCESS
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- D Question 14 Suppose for the country of Joshua-land, the annual inflation rate is 7%, the population growth is 5% per year while GDP increases by 2% per year. How long would it take for the country to double its GDP? O 7 years O 14 years 35 years O Never Question 15 For the previous question, how long would it take Joshua-land to double its GDP capita? per O 7 years O 14 years O 35 years Never Question 16 For Joshua land, how long would it take for prices to double? O 7 years O 10 years 35 years O Not enough informationarrow_forwardQUESTION 7 If foreign immigration (only) increases the number of workers in the US by 10%, GDP per worker should O A. Increase by 10% O B. Increase by less than 10% OC. Decrease by more than 10% O D.Decrease by less than 10%arrow_forwardPROBLEMS 1. Workers are compensated by firms with ābenefitsā in addition to wages and salaries. The most prominent benefit offered by many firms is health insurance. Suppose that in 2000, workers at one steel plant were paid $20 per hour and in addition received health benefits at the rate of $4 per hour. Also suppose that by 2010 workers at that plant were paid $21 per hour but received $9 in health insurance benefits. LO17.1 Ā By what percentage did total compensation (wages plus benefits) change at this plant from 2000 to 2010? What was the approximate average annual percentage change in total compensation? By what percentage did wages change at this plant from 2000 to 2010? What was the approximate average annual percentage change in wages? If workers value a dollar of health benefits as much as they value a dollar of wages, by what total percentage will they feel that their incomes have risen over this time period? What if they only consider wages when calculating their incomes?ā¦arrow_forward
- A dozen eggs cost $1.22 in January 1990 and $2.33 in January 2016. The average wage for workers in private industries was $10.02 per hour in January 1990 and $21.33 in January 2016. By what percentage did the price of a dozen eggs rise? 48% 91% 111% By what percentage did the wage rise? O 21% 94% 113% In order to earn enough to buy a dozen eggs, a worker had to work. Workers' purchasing power in terms of eggs minutes in January 1990 and between 1990 and 2016. minutes in January 2016.arrow_forwardIn the year 2014, the world's average per capita GDP was $14,517. What percent of the world's population lived in a country with per capita GDP that was below $14,517? O 21% 43% 56% OOOO 73% Show Transcribed Text Roughly what percent of the world's population live in countries with per capita GDP lower than the average world per capita GDP? 75% 50% Ā© 25% C 10%arrow_forwardApproximately how many people are employed in the federal bureaucracy? O 1 million-1.4 million O 1.5 million -1.7 million O2 million-2.4 million O 2.5 million - 3 millionarrow_forward
- If a nation with an aging population admits more low-skilled immigrants: wealth disparity decreases. O income disparity increases. job creation is reduced. O income mobility is reduced.arrow_forward3. Suppose that there are two countries with dif- ferent levels of total factor productivity, and that these differences exist because of barriers to technology adoption in the low-productivity country. Also suppose that these two countries do not trade with each other. Now, suppose that residents of each country were free to live in either country. What would happen, and what conclusions do you draw from this?arrow_forwardTable 25-1 The following table pertains to Quicheland, an economy in which the typical consumer's basket consists of 11 bushels of apples and 5 bushels of almond. Year Year 1 Year 2 Price of Apples (Dollars per bushel) 14 9 90.01. O 79.42. O 91.62 O 110.40 Price of Almond (Dollars per bushel). 5 13 Refer to Table 25-1. If Year I is the base year, then the CPI for Year 2 wasarrow_forward
- As one of the largest and fastest-growing industries in 2018, health care provided how many jobs for wage and salary workers? O 18 million 30 million 3 pts O 24 million O 12 millionarrow_forwardSuppose that the share of population employed in Country B is 60 percent, and that Countries B and D have the same real GDP per capita. Based on the information in the table, what share of Country D's population must be employed? Country Population (millions) Average Labor Productivity ($) 2,000 A B Ń O E Select one: a. 24 percent O b. 12 percent O c. 8.3 percent O d. 83.3 percent 100 150 75 250 95 10,000 25,000 50,000 60,000arrow_forward006.25.0 - MC - MANK08 D Over the last century, U.S. real GDP per person grew at a rate of about a. 2 percent per year, so that it is now 2 times as high as it was a century ago. Ob. 2 percent per year, so that it is now 8 times as high as it was a century ago. O c. 4 percent per year, so that it is now 2 times as high as it was a century ago. d. 4 percent per year, so that it is now 8 times as high as it was a century ago. Darrow_forward
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