MICROECONOMICS(LL); CNCT 21 2018 >IP<
21st Edition
ISBN: 9781260389470
Author: McConnell
Publisher: MCG CUSTOM
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Chapter 23, Problem 4DQ
To determine
The life time income distribution.
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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 million
A5.
Suppose that the initial rural distribution of income is (1, 2, 3, 4) while the initial urban distribution is (3, 4). The poverty line is 2, so the overall poverty rate (headcount index) is 1/3. Now imagine that all of the rural poor move to urban areas and each of them gains 20% in real income. Verify that the overall poverty rate falls to 1/6, yet the urban poverty rate rises from zero to 1/4.
Assume that the productivity of farm labour depends on daily caloric intake, similarly to that depicted in Figure17.4. Using this kind of diagram, compare the efficiency wages that would apply to the following two types of workers:
• A landless labourer
• A labourer with small plot of land on which he
grows staple crops
Describe the likely equilibrium unemployment rates and wage rates for landless labourers and small landholders. Judging partially on the basis of this example, what sorts of data and what empirical strategies might you use to see whether nutritional efficiency wages were an important element in the rural labour markets of poor, rural economies?
Chapter 23 Solutions
MICROECONOMICS(LL); CNCT 21 2018 >IP<
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