Answers to Assignment 3 ECON227
Why do upward-sloping labor supply curves to firms cause the marginal expense of labor to exceed
the wage rate?
Answer: With upward-sloping labor supply curves, firms wanting to increase their number of
Answers to Assignment 6
Q1. Discuss the concept of an implicit contract in the context of employment.
Answer: An implicit employment contract is the informal understanding between a worker
and an employer that the worker will show up to work and competent
Answers to Assignment 5
Suppose the supply curve for optometrists is given by Ls 6 0.6W, while the
demand curve is given by Ld 50 W, where W annual earnings in thousands of
dollars per year and L thousands of optometrists.
Q1. The marginal revenue product of labor in the local saw mill is MRPL 20 0.5L, where L
the number of workers. If the wage of saw mill workers is $10 per hour, then how many workers
the mill hire?
Answer: The mill will hire workers until M
Due on March 21st, 2016
a. Initial equilibrium W = $35, L = 15. (Find this by setting L s = 6 + 0.6W = Ld
= 50 W and solving for W.)
First round: L is still 15, so W = $51. This is Point A i
Due on April 6th, 2016
First, in most situations, employment contracts are incomplete and implicit there are
many unspecified informal understandings. In the context of employment, an implicit
contract is also called
Assignment # 4
Due on March 7th, 2016
This statement is incorrect. To understand how the market would adjust, lets assume
that we have a set of relatively safe coal mines and a set of relatively dangerous ones.
Both sets of mine
1. The decrease in the price of capital can generate two opposite effects for the
demand for labor in the restaurant industry. On one hand, the decrease in capital
price in the restaurant industry reduces meal production costs. Restaurants will
Answers to Assignment Four
Q1. The concept of compensating wage premiums for dangerous work does not apply
to industries like the coal industry, where the union has forced all wages and other
compensation items to be the same. Because all mines must pay t
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DEPARTMENT OF ECONOMICS
ECONOMICS 227.3 (01}
TERM EXAM #2.
Professor Mohiuui Hut} November- 4, 2088
Total Marks: 50 Time: 1 hour and 20 minutes
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DEPARTNIENT OF ECONOMICS
ECONOMICS 227.3 (01)
TERM EXAM #1
Professor Mobinul Huq October 1, 2009
DEPARTMENT OF ECONOMICS
Instructor: Hongbin Zhang
Office: Arts 258.9
Email: [email protected]
TIME AND LOCATION
Classes: Mondays, Wednesdays and Fridays 12:30pm