Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 17, Problem 7DQ
To determine
Principal-agent problem.
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Consider an individual who was employed prior to
having a child. Now, they face daycare costs (M) if
they choose to go back to work. Assume that they
earn an hourly wage (W) and their non-labour income
(YN) is greater than their daycare costs (YN > M).
Despite the daycare costs, this individual chooses to
work T-Lo hours per week.
Draw a graph that reflects this individual's income-
leisure constraint (both with and without daycare
costs), utility-maximizing indifference curve (Uo) and
choice of leisure hours (Lo).
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LO
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WAGE
7. Shifts in labor supply
Assume that the consulting and information technology industries employ people with similar skills. Suppose an increase in the demand for computer
analysts leads to a rise in their wages, while the demand for consultants remains the same.
The following graph shows the labor market for consultants in the United States.
Show the effect of the rise in demand for computer analysts on the U.S. labor market for consultants by shifting the labor demand curve, the labor
supply curve, or both.
Supply
Demand
Supply
Demand
LABOR
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Question 14
Human capital is H-e0.07*5), where S is the number of years of schooling. What is the ratio of the productivities of the persons having 9 and 12 years
of schooling, respectively. Hint: This will be the ratio of their wages in the competitive labor ratio of their wages in the competitive labor market.
O 0.81
0.95
O 1.03
O 1.54
Chapter 17 Solutions
Microeconomics
Ch. 17.3 - Prob. 1QQCh. 17.3 - Prob. 2QQCh. 17.3 - Prob. 3QQCh. 17.3 - Prob. 4QQCh. 17.A - Prob. 1ADQCh. 17.A - Prob. 2ADQCh. 17.A - Prob. 3ADQCh. 17.A - Prob. 4ADQCh. 17.A - Prob. 1ARQCh. 17.A - Prob. 2ARQ
Ch. 17.A - Prob. 3ARQCh. 17.A - Prob. 4ARQCh. 17.A - Prob. 1APCh. 17.A - Prob. 2APCh. 17 - Prob. 1DQCh. 17 - Prob. 2DQCh. 17 - Prob. 3DQCh. 17 - Prob. 4DQCh. 17 - Prob. 5DQCh. 17 - Prob. 6DQCh. 17 - Prob. 7DQCh. 17 - Prob. 8DQCh. 17 - Prob. 9DQCh. 17 - Prob. 10DQCh. 17 - Prob. 1RQCh. 17 - Prob. 2RQCh. 17 - Prob. 3RQCh. 17 - Prob. 4RQCh. 17 - Prob. 5RQCh. 17 - Prob. 6RQCh. 17 - Prob. 7RQCh. 17 - Prob. 1PCh. 17 - Prob. 2PCh. 17 - Prob. 3PCh. 17 - Prob. 4PCh. 17 - Prob. 5P
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