Midterm Answers
ECON 4531
University of Minnesota
Spring, 2015
Part 1
1)False.Unemployment rate is the fraction of people who are unemployed in the labor
force.
2)False.If wage rate increases, price of leisure increases so substitution eect decreases
the
Econ 4531 - Spring 2015
Homework 1
Deadline: 02/10 (beginning of the lecture)
This page should be the first page your HW.
Name:_
Student ID:_
Grading
Question 1:_ /20
Question 2:_ /20
Question 3:_ /20
Qu
Midterm Answers
ECON 4531
University of Minnesota
Fall, 2014
Part 1
1)False.Unemployment rate is the fraction of people who are unemployed i the labor
force.
2)False.If wage rate increases, price of leisure increases so substitution effect decreases
the h
Midterm Labor Economics Econ 4531 - Fall 2010
Instructions: For full credit, graphs must be completely LABELED and math work shown. Be sure to justify your answers clearly and precisely for full credit, even if questions do not explicitly ask for justicat
HW1 SOLUTIONS
ECON 4531
University of Minnesota
Spring, 2015
1) Since utility function is concave, we have a corner solution. If Tom works all his
time, C=16 and L=0. If Tom does not work at all, C=0 and L=8. U(16,0)=256 and
U(0,8)=2*64=128 so Toms optima
HW1 SOLUTIONS
ECON 4531
University of Minnesota
Fall, 2015
1) Since utility function is concave, we have a corner solution. If Tom works all his
time, C=24 and L=0. If Tom does not work at all, C=0 and L=8. U(24,0)=576 and
U(0,8)=3*64=192 so Toms optimal
Sample Midterm
Labor Economics
Econ 4531 - Spring 2016
Instructor: Fatih Fazilet
Date: 03.08.2016
Time Allowed: 70 minutes
Instructions:
Do not forget to write your name as a first thing. There
will be automati
Econ 4531 Spring 2016
Homework 2
Deadline: 03/03 (beginning of the lecture)
This page should be the first page of your HW.
Name:_
Student ID:_
Grading
Question 1:_ /10
Question 2:_ /10
Question 3:_ /10
Midterm
Labor Economics
Econ 4531 - Fall 2011
Instructor: Daolu Cai
Instructions: For full credit, graphs must be
completely LABELED and math work shown. Be
sure to justify your answers clearly and precisely
for full credit, even if questions do not expli
HW2 Solution Manual
ECON 4531
University of Minnesota
Spring, 2015
1) Since inputs are perfect substitutes, the rm will use either capital or labor unless
M PE
w
= M PK .
r
When w=5,
and K = 0
E
M PE
M PK
When w=10,
K=100/3 and
=
2
3
>
M PE
= 2
M PK
3
100
CHAPTER 2
2-1. How many hours will a person allocate to leisure activities if her indifference curves between consumption and goods are concave to the origin? A worker will either work all available time or will not work at all. As drawn in Figure A, poin
HW1 SOLUTIONS
ECON 4531
University of Minnesota
Spring, 2016
1) Since utility function is concave, we have a corner solution. If Tom works all his
time, C=20 and L=0. If Tom does not work at all, C=0 and L=10. U(20,0)=400 and
U(0,10)=4*100=400 so both of
Midterm
Labor Economics
Econ 4531 - Fall 2013
Instructor: Tayyar Buyukbasaran
Instructions:
Do not forget to write your name as a first thing. There will
be automatic discount of 5 points if you fail to write your
name in the beginning of the exam.
For
Midterm
Labor Economics
Econ 4531 - Fall 2014
Instructor: Fatih Fazilet
Date: 10.28.2014
Time Allowed: 70 minutes
Instructions:
Do not forget to write your name as a first thing. There will be automatic
discount of 5 points if you fail to write your name
Econ 4531 - Spring 2011 Problem Set 2 Deadline: Feb 22nd (during lecture)
1. (10 point each) Review Questions from Chapter 3: Questions 1, and 6; Chapter 4, Question 1. 2. (10 points) Replicate and update Table 3.1, Figure 3.1 and Figure 4.1. 3. (10 point
Econ 4531 - Spring 2011 Problem Set 1 Deadline: February 3rd (in lecture)
1. (15 points) For this question, please use the data le laborEcon.dta. I collected the data from the Current Population Survey (CPS) 2009. You can use Stata, Gretl or other sort of
Econ 4531 - Fall 2013
Homework 4
Individual Homework
Deadline: Dec 10th (beginning of the lecture)
1. (10 point) Debbie is about to choose a career path. She has narrowed her options to two alte rnatives.
She can either become a marine biologist or a conc
Econ 4531 - Fall 2013
Homework 4
Yuxin Sun
ID#:4641358
1. (10 point) Debbie is about to choose a career path. She has narrowed her options to two alternatives.
She can either become a marine biologist or a concert pianist. Debbie lives two periods. In the
Sample Midterm Answer Key
PART I True or False (each 3 points)
1) Employment rate is the fraction of people who are employed in the labor force,
i.e. E/LF.
False. Employment rate is the fraction of people who are employed in the
population.
2) If wage rat
Sample Midterm
Labor Economics
Econ 4531 - Spring 2015
Instructor: Fatih Fazilet
Date: 03.03.2015
Time Allowed: 70 minutes
Instructions:
Do not forget to write your name as a first thing. There
will be automati
1. (10 points) Let Toms utility function be U(C, L) = 2 + 82. If Tom has 10 hours to split
between work and leisure and his wage rate is $3 per hour, what would be his optimal
allocation? Hint: Note that this utility function has indifference curves str
Question 1. (15 points) Suppose there are two inputs in the production function, labor and capital, and
these two inputs are perfect substitutes. The existing technology permits 2 machines to do the work of 1
worker. So F(E,K)=K+2E. The firm wants to prod
Econ 4531 Spring 2017
Homework 3
Deadline: 4/11 (beginning of the lecture)
This page should be the first page of your HW. Otherwise 5 points will be deducted.
Name:_
Student ID:_
Grading
Question 1:_ /15
Question 2:_ /15
Question 3:_ /15
Que
HW2 Solution Manual
ECON 4531
University of Minnesota
Spring, 2016
1) Inputs are perfect substitutes, so
M PE
M PK
10
10
=
M PE
20
When w=20, M
= 21 = 10
=
PK
and K + 2E = 100 is optimal
w
,
r
so any combination of K and E such that K > 0, E > 0
=
w
,
r
W
Practice Final
Labor Economics
Econ 4531 - Fall 2014
Instructor: Fatih Fazilet
Date: 12.15.2014
Time Allowed: 105 minutes
Instructions:
Do not forget to write your name as a first thing. There will be automatic
discount of 5 points if you fail to write y
Sample Problems for Final
Final
Labor Economics
Econ 4531 - Fall 2013
Instructor: Tayyar Buyukbasaran
Instructions: For full credit, graphs must be completely
LABELED and math work shown. Be sure to justify your
answers clearly and precisely for full cred
Practice Final Answers
ECON 4531
University of Minnesota
Fall, 2014
Part 1 1)False, normative economics answers What should be? questions. 2)True
3)True 4)False, Monopsony is the market structure in which there is only one firm that
hires labor. 5)False,
Practice Final
Labor Economics
Econ 4531 - Spring 2015
Instructor: Fatih Fazilet
Date: 05.07.2015
Time Allowed: 105 minutes
Instructions:
Do not forget to write your name as a first thing. There will be automatic
discount of 5 points if you fail to write
Econ 4531 Spring 2015
Homework 2
Deadline: March 3th (beginning of the lecture)
This page should be the first page of your HW.
Name:_
Student ID:_
Grading
Question 1:_ /10
Question 2:_ /10
Question 3:_
HW 4 Solutions
ECON 4531
University of Minnesota
Fall, 2016
1) a) According to data, we can assume that there are 5 people in the country with the
following data.
# of people
1-2
3-4
5
Income
20
40
80
Cumulative Income
40
120
200
Share of cumulative incom
HW1 SOLUTIONS
ECON 4531
University of Minnesota
Fall, 2016
1) Since utility function is concave, we have a corner solution. If Tom works all his
time, C=30 and L=0. If Tom does not work at all, C=0 and L=10. U(30,0)=900 and
U(0,10)=5*100=500 so optimal (C
HW2 Solution Manual
ECON 4531
University of Minnesota
Fall, 2016
1) Inputs are perfect substitutes, so
When w=10,
K=0
M PE
M PK
=
4
1
>
10
10
=
w
,
r
so firm will only use labor. Since q=100, E=25,
When w=30,
K=0
M PE
M PK
=
4
1
>
30
10
=
w
,
r
so firm wi
HW3 Solution Manual
ECON 4531
University of Minnesota
Fall 2016
1)
P rof it = 3, 000, 000 50S 2 20 (100, 000 400S)
= 3, 000, 000 50 S 2 2, 000, 000 + 8, 000 S, then
P rof it
= 100 S + 8, 000 = 0 S = 80 thus w = 100, 000 400 80 = 68, 000
S
Then Cost of saf
Sample Midterm Answer Key
PART I True or False (each 3 points)
1) Employment rate is the fraction of people who are employed in the labor force,
i.e. E/LF.
False. Employment rate is the fraction of people who are employed in the
population.
2) If wage rat