Homework #3 Solutions
4. N are: Changes madefrom book question (in question anal1 in table values). Given the data. in
Table A, calculate MP, AP, TR, MR, and MRP of labor (assume capital is xed) for this rm.
Then complete the labor demand schedu
Suppose the CPI was 100 in 1985, and currently the CPI is 200. According to the CPI, $1000 today purchases
the same amount of goods and services as
a. $2000 purchased in 1985.
b. $100 purchased in 1985.
c. $500 purchased in 1985.
d. $200 purchased in 1985
Homework # 4 Solutions
4. Predict the impact of each of the following on the equilibrium wage rate and level of
employment in labor market A:
a.) An increase in labor demand and supply in labor market A.
An increase in labor demand will shift t
Homework Solutions #1
#2. Indicate in each of the following instances whether the specied circumstances will
cause a worker to want to work more or fewer hours:
The wage rate increases and the substitution effect is greater than the income
Homework #2 Solutions
3.) In 2006 the United States had a population of 299 million, of which 70 million were
either under 16 years of age or institutionalized. Approximately 151 million people were
either employed or unemployed but actively see
Identifv the choice that best completes the statement or answers the question.
1. Economists view positive statements as
a. afrmative, justifying existing economic policy.
b. optimistic, putting the best possible interpretation on things.
_.-_ _.- _._-_ _ \- -_- _-,
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) Which of the following statements is E about scarcity?
A) Scarcity refers to the situation in which unlimited wants excee
l.  Short.Answer Questions:
(a)  Consider a consumerspreferences over three bundles (X ,Y,Z) as follows: X ~ Y, X N
Z, and Y > Z. Based on this information alone, is the consumers preferences transitive?
Explain your answer. . g A
Ala KW, ~27. a
Homework #5 Solutions
#2. Analyze why college professors generally earn less than their professional PhD
counterparts who are employed by corporations.
College professors generally earn less than their professional counterparts because of
According to the quantity theory of money,
a. manipulating the quantity of money is the only effective way to stimulate the economy.
b. to keep price levels constant, the money supply should always be kept constant.
c. higher quantities of money will caus
If you deposit $100 of currency into your checking account at a bank, this action by itself
21. decreases the money supply.
b. increases the money supply.
c. does not change the money supply.
d. may raise, lower, or not change the money supply.
What happens in the market for packhorses if the number of farms producing packhorses rises at the same
time that the price of pack mules (a substitute) rises?
a. Equilibrium quantity will rise, and equilibrium price may rise, fall, or stay the same.
Of univariate functions
Optimization is just finding the maxima and minima of functions.
A look back at the previous lecture Notice that the (local) maxima and minima coincide with the points where the first
derivative cross the X-axis, i.e.
1. Which of These sTaTemenTs is a posiTive sTaTemenT (as opposed To a normaTive sTaTemenT)?
a. Income Tax raTes should noT have been cuT as They were a few years ago.
The quanTiTy of money has grown Too slowly in recenT years.
When The quanTiTy of money g
/ Chapter 1:
Labor Ec_onomics: _
Introduction and Overvrew
LEARNING OBJECTIVES ]
Aft learning the material in Chapter 1 of Contemporary
Labor Economics, the studentshoul'd be able to:
explain why labor economics is justied as a special field
A Simple Supply and Demand Model
The Mathemalim input/output will become more clear to you as the semester progresses and after you read the first chapter
of the Stinespring book.
Consider a simple supply and demand model. First let the demand function be
1 Consumer Theory in a Nutshell
ctnutshell.pdf February 6, 2007
You might want to read up on consumer theory in your intermediate micro
The intent is build a model/theory to explain What an individual Will pur
chase in the market place.
Start by den