LABOR ECONOMICS
8th Edition
ISBN: 9781260004724
Author: BORJAS
Publisher: RENT MCG
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Question
Chapter 5, Problem 10P
(a)
To determine
Explain the given statement.
(b)
To determine
Determine the relation between teachers’ salaries and school quality.
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Consider the labor market for police officers. Police officer have preferences over their salary, amenities, and the characteristics of the municipality in which they serve.
(a) One would reasonably expect that high-crime municipalities pay higher wages than low-crime municipalities. But suppose high-crime municipalities pay lower wages than low-crime municipalities. Why? (Assume the primary source of funding for police officers comes from tax revenues from within the municipality and that high-crime municipalities tend to generate less tax revenue than low-crime municipalities.)
(b) Does your discussion suggest anything about the relation between high-crime municipality and the quality of police officers in those districts?
Suppose a single parent can work up to 16 hours per day at a wage rate of $30 per hour and has no non-labour income. An income maintenance program has been developed to assure a minimum level of income for low-income families. A simplified version of this type of a program is one that would give this single parent a $120 no-work grant accompanied by a benefit reduction of a dollar for every dollar earned until no benefit is left to pay. For example, to someone who does not work the program pays $120, while for someone who works 1 hour and earns $30 the benefit is reduced by $30 to $90.
Draw the daily budget constraints with and without program participation for the single individual described above on the plane that has leisure L on the horizontal axis, and money income Y (inclusive of benefits if on a program) on the vertical axis. Carefully mark all the important points of the constraints and indicate the slopes.
Question: At what level of labour market earningsdoes the subsidy end?…
Being able to work with and understand percentages and ratios is important in
many different careers. Consider each of the following situations that require
work with percentages or ratios.
a. Some government funding is
related to the number of people
living in poverty in a particular
area. The 2010 population of
Caswell County, NC, was 23,719
and 21.7% of the people were
living in poverty. (Source: quickfacts.
census.gov/qfd/states/37/37033.html) How
many people were living in
poverty in Caswell County, NC,
in 2010?
b. Wisconsin farmers received an average price of $17.60 per 100 pounds for
their milk in April 2012, down $1.60 from April 2011. By what percentage
did the average price of milk decrease between April 2011 and April 2012?
(Source: www.nass.usda.gov/Statistics_by_State/Wisconsin/Publications/Dairy/mkallpri.pdf)
c. The Centers for Disease Control estimates that 1 in 6 people in the United
States suffer food poisoning in any given year. At the beginning of 2012, the…
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