Quiz 4 Monday September 24 Name: Answer Key .
1. What is a firm's goal? (To maximize what?) Profit
2. The firm's short run hiring rule is where VMP E = w. The firm's long run hiring rule is where VMPE = w and VMPK = r .
3. A change in the wage ha
Quiz 3 Monday September 17 Answer Key
1. The Intertemporal Substitution Effect says that when the wage rate increases a person tends to work more . (From the book: "The key implication of the analysis can be easily summarized: A person will work fe
Quiz 2 Friday September 5 Answer Key
1. If you are over 16 you are considered either employed, unemployed, or out of the labor force.
2. There are many measurement issues associated with calculating the unemployment rate. One of them is that disco
Quiz 1 Monday August 27 Answer Key
1. Who are the 3 key actors in the labor market? 1. Workers/Individuals 2. Firms/Employers 3. Government
2. Identify the following 3 questions as either positive or normative: A. UNC has more students than Duke:
10.24.2007 Midterm II - Chapter 5 - Minimum wage - Chapter 6 - Chapter 7 Signaling Continued: - High-ability workers vs. Low-ability workers example o Firms don't know an individual's ability, but they do know how many there are of each ability o TAB
Chapter 5 Invisible hand theorem labor market participants are in search of their own selfish goals attain an outcome that no one in the market consciously sought to achieve Single Competitive Labor Market: - intersection of labor supply (S) and lab
10.22 The Wage-Schooling Locus: - used to determine how much schooling to get - shows the salary that firms are willing to pay for a given amount of education - wage pay for a certain years of education - Assumptions: o A market for each level of edu
Chapter 8: The Wage Structure The Earnings Distribution: - two important properties: o there is a lot of wage dispersion o the wage distribution is not symmetrical wit similar-looking tails on both sides of the distribution - positively skewed wage d