Exploring Economics
8th Edition
ISBN: 9781544336329
Author: Robert L. Sexton
Publisher: SAGE Publications, Inc
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Chapter 3, Problem 3P
To determine
The direct relationship between job opportunities and
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An individual's decision to supply her labor or to spend her time in leisure activity is known as the labor-leisure tradeoff.
True or false?
Over the last several decades improvements in computer software, hardware and robotics have dramatically altered the ability of machines to do complex repetitive tasks.
i) Discuss the implications for semi-skilled skilled workers as a result of this improvement.
ii) Discuss how the cost of the new technology influences the choice of inputs used in production and the rate of adoption of the new technology.
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Question: You read a newspaper report that compares wages paid to employees at Starbucks in India and in the United Kingdom. At the time, 1 pound was equal to 87 rupees. The report says that Starbucks baristas in India are paid a mere 56 pence an hour, which is lower than the price of the cheapest coffee that Starbucks sells in the United Kingdom. A friend of yours who read the report is appalled by this information and thinks that Starbucks ought to raise its salaries substantially in India. Is your friend necessarily correct? Explain your answer.
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- You are a professor of economics at a university. You've been offered the position of serving as department head, which comes with an annual salary that is $6,500 higher than your current salary. However, the position will require you to work 200 additional hours per year. Suppose the next best use of your time is spending it with your family, which has value of $20 per hour. What is the difference in the net benefit from becoming the departmenthead? The change in net benefit is (Enter your response as an integer.) To optimize, you ▼ should or should not become a department head.arrow_forwardIn educational economics, what does the term "rate of return to education" refer to? a) The percentage of students who complete their education b) The increase in income or earning potential associated with additional years of education c) The cost of educational resources per student d) The number of schools or universities in a given regionarrow_forwardIn many areas, the cost of real estate is increasing at an increasing rate. Many homes are being sold at prices higher than the asking price. Using your economic lens, why is this happening? Will this trend continue?arrow_forward
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