Suppose Carl's wage-schooling locus is given by the following: 1 Years of schooling Earnings 9 ...
Suppose Carl's wage-schooling locus is given by the following: 1
Years of schooling Earnings
9 $18,500
10 $20,350
11 $22,000
12 $23,100
13 $23,900
14 $24,000
15 $24,000
1. Derive the marginal rate of return at each level of schooling and draw a graph of the marginal rate of return.
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Suppose Carl's wage-schooling locus is given by the following:
1
Years of schooling Earnings
9 ...
Suppose people with 15 years of schooling average earnings of $60,000 while people with 16 years...
Suppose people with 15 years of schooling average earnings of $60,000 while people with 16 years of education average $66,000. Suppose the skills acquired in school depreciate over time, perhaps because technological change makes the things learned in school obsolete. What happens to a worker’s optimal amount of schooling if the rate of depreciation increases?
Question 1 1. (10 marks) Suppose that schooling (s) is the only variable that affects earnings....
Question 1 1. (10 marks) Suppose that schooling (s) is the only variable that affects earnings. The following equations describe the weekly salaries of tall and short workers: Wtall = 700 + 100s Wshort = 400 + 80s On average, tall workers have 15 years of schooling and short workers have 12 years of schooling. a) (4 marks) What is the short-tall wage differential in the labour market? b) (6 marks) Use the Oaxaca decomposition approach to calculate how much...
Suppose that a firm has a production function given by: ? = ?^?.???^?.? . The wage...
Suppose that a firm has a production function given by: ? = ?^?.???^?.? . The wage rate is $18 and the rental rate is $9. 12. Suppose that the firm has 4 units of capital in the short run. Find the short run total cost function. ________________________________ 13. Find the marginal product of labor (MPL) function. ________________________________ 14. Solve the optimization condition for K and write that equation. ________________________________ 15. Suppose the firm wants to minimize the cost of producing...
1. The following sample on the level of education (measured by the number of years of schooling) ...
1. The following sample on the level of education (measured by the number of years of schooling) and wages (hourly) earned by 15 individuals is as follows: Education Wages (S) Education Wages (S) 4.45 5.57 5.97 7.33 7.31 6.58 4.45 13.53 10 12 14 15 16 17 15 7.31 7.82 11.02 10.67 10.83 13.61 10.67 9 10 18 According to the human capital theory education increases a worker's pro- ductivity and thus leads to higher wages. Consider the economic model...
Suppose the following table that characterizes the situation of monopsony. a) Complete the table above by...
Suppose the following table that characterizes the situation of
monopsony.
a) Complete the table above by
computing total and marginal expense of labor for each level of
employment
b) Find the level of employment that
maximizes profit? What wages will the monopsony offered?
c) On the same diagram, draw the
supply curve, marginal expense curve and marginal revenue product
curve.
Total cost Wage Offered Marginal Marginal Number of workers expense revenue Product (МЕ) $10 $11 $12 $13 $14 5 ?...
If the data below represent the number of years of study and the wage earned by a sample of 10 women, calculate:
Explain briefly what is meant by linear correlation between two variables.
Use a graph if necessary. (4)
(b) If the data below represent the number of years of study and the wage
earned by a sample of 10 women, calculate:
i. the covariance of the two variables; (2)
ii. the coefficients of variation of the two variables; and (2)
iii. the variances of the two variables. (2) [10]
Person Years of study Wage (R'000s)
1
2
3
4
5
6...
1. Suppose that the production function for lava lamps is given by Q = KL -ľ, where is the number of lamps produced pe...
1. Suppose that the production function for lava lamps is given by Q = KL -ľ, where is the number of lamps produced per year, K is the machine-hours of capital, and L is the man-hours of labor. Suppose K = 600. a. Draw a graph of the production function over the range L = 0 to L = 500, putting L on the horizontal axis and on the vertical axis. Over what range of L does the production function...
Suppose a firm spends $1,000 per day producing scooters. The wage (w) rate per worker (L)...
Suppose a firm spends $1,000 per day producing scooters. The wage (w) rate per worker (L) is $200 per day and rental rate (r) per unit of capital (K) is $100 per day. The firm's isocost line at the current expenditure level is represented by: 20 19 TC1 18 17 16 15 14 13 12 11 K 10 TC3 9 8 7 6 5 4 3 TC4 TC2 TC1 у 10 TC3 8 7 6. 5 4 TC4 TC2 2...
Complete the following labor supply table for a firm hiring labor competitively 9 Marginal Marginal Resource...
Complete the following labor supply table for a firm hiring labor competitively 9 Marginal Marginal Resource Units of Total Labor Revenue Labor (Labor) Cost Wage Rate Cost Product $14 $ na na 1 14 $38 2 14 28 14 24 4 14 20 5 14 14 6 14 1e Show graphically the labor supply and marginal resource (labor) cost curves for this Instructions: 1. Use the line tool (MRC, plot 6 points) to draw the marginal resource cost curve. 2...
1. (9 pts) Consider the following economic model describing workers' earnings: In(wage) = Bo + Beduc...
1. (9 pts) Consider the following economic model describing workers' earnings: In(wage) = Bo + Beduc + Bztenure + Bzblack + Batenure? + Bseduc. black + Botenure black With all the variables described as follows: In(wage) = natural log of monthly earnings; educ = years of education; tenure = years with current employer; black = 1 if black and 0 if not; tenure? = tenure*tenure educ.black is an interaction variable equal to educ*black; tenure,black is an interaction variable equal to...
1. The following sample on the level of education (measured by the number of years of schooling) and wages (hourly) earned by 15 individuals is as follows: Education Wages (S) Education Wages (S) 4.45 5.57 5.97 7.33 7.31 6.58 4.45 13.53 10 12 14 15 16 17 15 7.31 7.82 11.02 10.67 10.83 13.61 10.67 9 10 18 According to the human capital theory education increases a worker's pro- ductivity and thus leads to higher wages. Consider the economic model...
Suppose the following table that characterizes the situation of
monopsony.
a) Complete the table above by
computing total and marginal expense of labor for each level of
employment
b) Find the level of employment that
maximizes profit? What wages will the monopsony offered?
c) On the same diagram, draw the
supply curve, marginal expense curve and marginal revenue product
curve.
Total cost Wage Offered Marginal Marginal Number of workers expense revenue Product (МЕ) $10 $11 $12 $13 $14 5 ?...
1. Suppose that the production function for lava lamps is given by Q = KL -ľ, where is the number of lamps produced per year, K is the machine-hours of capital, and L is the man-hours of labor. Suppose K = 600. a. Draw a graph of the production function over the range L = 0 to L = 500, putting L on the horizontal axis and on the vertical axis. Over what range of L does the production function...
Suppose a firm spends $1,000 per day producing scooters. The wage (w) rate per worker (L) is $200 per day and rental rate (r) per unit of capital (K) is $100 per day. The firm's isocost line at the current expenditure level is represented by: 20 19 TC1 18 17 16 15 14 13 12 11 K 10 TC3 9 8 7 6 5 4 3 TC4 TC2 TC1 у 10 TC3 8 7 6. 5 4 TC4 TC2 2...
Complete the following labor supply table for a firm hiring labor competitively 9 Marginal Marginal Resource Units of Total Labor Revenue Labor (Labor) Cost Wage Rate Cost Product $14 $ na na 1 14 $38 2 14 28 14 24 4 14 20 5 14 14 6 14 1e Show graphically the labor supply and marginal resource (labor) cost curves for this Instructions: 1. Use the line tool (MRC, plot 6 points) to draw the marginal resource cost curve. 2...
1. (9 pts) Consider the following economic model describing workers' earnings: In(wage) = Bo + Beduc + Bztenure + Bzblack + Batenure? + Bseduc. black + Botenure black With all the variables described as follows: In(wage) = natural log of monthly earnings; educ = years of education; tenure = years with current employer; black = 1 if black and 0 if not; tenure? = tenure*tenure educ.black is an interaction variable equal to educ*black; tenure,black is an interaction variable equal to...
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