Questions from Labor Economics

Q: Ms. Aura is a psychic. The demand for her services

Ms. Aura is a psychic. The demand for her services is given by Q = 2,000 - 10 P, where Q is the number of one-hour sessions per year and P is the price of each session. Her marginal revenue is MR = 20...

Q: Suppose two households earn $40,000 and $56,

Suppose two households earn $40,000 and $56,000, respectively. What is the expected percent difference in wages among the children, grandchildren, and great grand-children of the two households if the...

Q: Suppose the bottom 50 percent of a population (in terms of

Suppose the bottom 50 percent of a population (in terms of earnings) all receive an equal share of p percent of the nation’s income, where 0 ≤ p ≤ 50. The top 50 percent of the population all receive...

Q: Consider two developing countries. Country A, though quite poor,

Consider two developing countries. Country A, though quite poor, uses government resources and international aid to provide public access to quality education. Country B, though also quite poor, is un...

Q: File-sharing software threatens the music industry in part because artists

File-sharing software threatens the music industry in part because artists will not be fully compensated for their recordings of songs. Suppose that the government decides that file-sharing software p...

Q: Explain why the intergenerational correlation of earnings would likely be higher or

Explain why the intergenerational correlation of earnings would likely be higher or lower than average for the following groups or as a consequence of policy changes in the United States: a. Improved...

Q: What effect will each of the following proposed changes have on wage

What effect will each of the following proposed changes have on wage inequality? a. Indexing the minimum wage to inflation. b. Increasing the benefit level paid to welfare recipients. c. Increasing wa...

Q: From 1970 to 2000, the supply of college graduates to the

From 1970 to 2000, the supply of college graduates to the labor market increased dramatically, while the supply of high school (no college) graduates shrank. At the same time, the average real wage of...

Q: a. Is the presence of an underground economy likely to result

a. Is the presence of an underground economy likely to result in a Gini coefficient that overstates or understates poverty? b. Consider a simple economy where 90 percent of citizens report an annual i...

Q: Use the two wage ratios for each country in Table 7-

Use the two wage ratios for each country in Table 7-4 to calculate the percent increase in the 90-10 wage ratio from 1984 to 1994. Which countries experienced a compression in the wage distribution ov...