# Economics Study Set 17

## Quiz 20 :Labor and Entrepreneurship: the Human Inputs

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What are some reasonable goals for a union Use the tools of supply and demand to explain how a union might pursue its goals, whatever they are. Consider a union that has been in the news recently. What was it trying to accomplish
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Profit maximization is the main goal of the union. Higher wages to the labors and the suitable working conditions in the firm are goals of the union. Wages of the labors in the market differs. It can be shown with the help of following diagram:
In the above diagram, one has taken number of workers on the x-axis and wages on the y-axis. DD is the demand curve and SS is the supply curve. W is the wages in the market.
Supply-demand analysis entails that wages are relatively higher in the markets where demand is high relative to supply. If the demand is higher relative to supply, then it can be said that the wages are high in the market.
Union has been in news, aiming to increase the demand of the labor wages in the market. Negotiation with the firm about the labors requirement would be easier for the union.

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If two jobs are available, one of which is fun and very respectable and the other unpleasant and dangerous, where would you expect wages to be higher Is that really so in practice
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Wages would be higher in the unpleasant and dangerous job. If the demand is higher relative to supply, then the wages would be higher in the market.
If people find the pleasant and fun job, then the labors would be attracted more towards those jobs causing reduction in wages.
If the wages are higher in the job, the job may not be easier one. It may be unpleasant and unsatisfying job for the people.

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Discuss the concept of the financial rate of return on a college education. If this return is less than the return on a bank account, does that mean you should quit college Why might you want to stay in school anyway Are there circumstances under which it might be rational not to go to college, even when the financial returns to college are very high
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The rate of return is the profit or the loss on an investment for given period of time. Investment in college education is investment in the human capital. Investment in the college lead to increase the number of students per year which results to increase in the profit to the college; is consider as the financial rate of return on a college education.
If the rate of return of college is less than the return on a bank account, then one should not quit college. Investment on college education may be less than the returns of bank account because students go to colleges to get trained and an investment in the bank is done by already employed persons.
Tuition in the school is less than the colleges and the investment rate of return is always more. All students compulsory attend school but all students may stop education after school. Thus, one wants to stay in school anyway.
It may be rational sometime to not to go to college. After the school education some students may take direct training for the business or job. Therefore, the financial rate of return will be more than the rate of return of college.

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Explain what a doubling of the number of customers for your snow cleaner will do to the R D component of your marginal costs.
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Why do you think medieval China, with all its incredible inventions, fell behind economically
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Colleges are known to pay rather low wages for student labor. Can this trend be explained by the operation of supply and demand in the local labor markets Is the concept of monopsony of any use How might things differ if students formed a union
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It seems to be a well-established fact that workers with more years of education typically receive higher wages. What are some possible reasons for this trend
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If you were the youngest son of an English nobleman in the Middle Ages, what could you do to make your fortune What kinds of innovation would be appreciated by people in power
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The following table shows the number of pizzas that can be produced by a large pizza parlor employing various numbers of pizza chefs. a. Find the marginal physical product schedule of the pizza chefs. b. Assuming a price of $9 per pizza, find the marginal revenue product schedule. c. If chefs are paid$100 per day, how many chefs will this pizza parlor employ How would your answer change if chefs' wages rose to $125 per day d. Suppose the price of pizza increases from$9 to $12. Show what happens to the derived demand curve for chefs. Essay Answer: Tags Choose question tag Can you think of some types of workers whose marginal products probably were raised by computerization Are there any whose marginal products were probably reduced Can you characterize the difference between the two types of jobs in general terms Essay Answer: Tags Choose question tag Since about 1980, GDP per capita (that is, the average real income per person) in the United States has risen fairly substantially. Yet real wages have failed to rise. What do you think may explain this phenomenon Essay Answer: Tags Choose question tag In which of the following industries is wage determination most plausibly explained by the model of perfect competition The model of bilateral monopoly a. Odd-job repairs in private homes b. Manufacture of low-priced clothing for children c. Auto manufacturing Essay Answer: Tags Choose question tag Approximately what fraction of the U.S. labor force belongs to unions (Try asking this question of a person who has never studied economics.) Why do you think this fraction is so low Essay Answer: Tags Choose question tag Suppose you are the sole producer of commodity X, which was just invented to clean the snow from sidewalks more efficiently, and you have produced enough to sell for two winters. If the quantity you expect to sell in 2012 would yield MR =$400 and in 2013 it will be \$300, what can you do to try to increase your total profit
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College professors are highly skilled (or at least highly educated!) laborers, yet their wages are not very high. Is this a refutation of the marginal productivity theory
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In a bitter strike battle between Eastern Airlines and several of its unions, it was clear from the beginning that the airline was in serious financial trouble. The airline was, indeed, eventually forced to close down, costing many jobs. Discuss what might nevertheless have led the unions to hold out so tenaciously.
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How did Julius Caesar attain his position in Rome and in history In what sense can his activities be said to have been entrepreneurial
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What are some of the U.S. laws and other rules that played a critical role in the attainment of leadership in per-capita income and innovation
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