Question

In: Economics

1. Higher education tends to lead to higher salaries because education: a) increases productivity b) enables...

1. Higher education tends to lead to higher salaries because education:

a) increases productivity

b) enables graduates to repay loans.

c) confers on one a higher social status.

d) requires time to acquire.

2. What changes in a labor market graph if the workers of a company form a union?

a) The labor market supply curve shifts to the right.

b) The labor market supply curve shifts to the left.

c) The labor market demand curve shifts to the right.

d) The labor market demand curve shifts to the left.

3. Explain the logic of efficiency wages.

Solutions

Expert Solution

ANSWER-

1.) Higher education tends to lead to higher salaries because education:

Answer- (a) increases productivity.

Explanation - Higher level of education leads to increase in persons knowledge and skills which increases prodcutivit.

2.) What changes in a labor market graph if the workers of a company form a union?

Answer - (c) The labor market demand curve shifts to the right.

Explanation - When the wokers form a union it leads to restricting the supply of labor and increasing the demand for labor and when demand for labor rises the labor market demand curve shifts to right.

3.) Explain the logic of efficiency wages.

Answer - The efficiency wages theory explains that the labor productivity increases when the wages of the labor is increased as the labor fell more motivated to work when the wages are increased.

Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

In this module we learned that, despite increases in the cost,the value of higher education...
In this module we learned that, despite increases in the cost, the value of higher education has increased over time. How can college be made more affordable? Revenues earned by colleges and universities come from three main sources: Tuition and fees paid by students, which have increased faster than the cost of living. Support from governments at the federal, state and local levels. This support is paid for through tax revenues. Even private colleges and universities obtain funding from the...
In this module we learned that, despite increases in the cost, the value of higher education...
In this module we learned that, despite increases in the cost, the value of higher education has increased over time. How can college be made more affordable? Revenues earned by colleges and universities come from three main sources: Tuition and fees paid by students, which have increased faster than the cost of living. Support from governments at the federal, state and local levels. This support is paid for through tax revenues. Even private colleges and universities obtain funding from the...
In this module, we learned that, despite increases in the cost, the value of higher education...
In this module, we learned that, despite increases in the cost, the value of higher education has increased over time. How can college be made more affordable? Revenues earned by colleges and universities come from three main sources: Tuition and fees paid by students, which have increased faster than the cost of living. Support from governments at the federal, state, and local levels. This support is paid for through tax revenues. Even private colleges and universities obtain funding from the...
1.Innovative Assessment in Higher education Introduction
1.Innovative Assessment in Higher education Introduction
2. Traditionally, monopolies are harmful because they lead to higher prices for consumers. However, using Google...
2. Traditionally, monopolies are harmful because they lead to higher prices for consumers. However, using Google for search is free. Are there any potential harmful effects of Google’s significant market power?
1: The demand for a product tends to be inelastic if a. it is expensive b....
1: The demand for a product tends to be inelastic if a. it is expensive b. a small proportion of consumer's income is spent on the good c. consumers are quick to respond to price changes d. it has many substitutes 2: Two products are complements if the a. cross-price elasticity of demand is less than zero b. cross-price elasticity of demand equals zero c. cross-price elasticity of demand is greater than zero d. price elasticity of demand for each...
The wage-schooling locus is A. downward sloping because education is generally productive. B. upward sloping because...
The wage-schooling locus is A. downward sloping because education is generally productive. B. upward sloping because education is generally productive. C. backward bending. D. horizontal because wages are unrelated to schooling. E. vertical because education is a public good. Present value calculations allow one to determine A. the return to an uncertain asset. B. the present-day costs and/or benefits of various options. C. the utility value of a particular option. D. the social cost of financial calculations. E. the real...
1. Imagine that there is a technological advancement which increases the productivity of capital. Which variable...
1. Imagine that there is a technological advancement which increases the productivity of capital. Which variable in the model should we increase? Show the effect of this on steady-state capital and output on the usual graph. 2. It turns out that the effect of a change in the savings rate on the steady-state consumption is ambiguous. Let's try to show this with the power of algebra! Let A=2, L=100, and d=1/4 but do not pick a value for s. Solve...
1. Imagine that there is a technological advancement which increases the productivity of capital. Which variable...
1. Imagine that there is a technological advancement which increases the productivity of capital. Which variable in the model should we increase? (You may assume that increases the productivity of both capital and labor. In other words, don't mess with the exponents......) Show the effect of this on steady-state capital and output on the usual graph. 2. It turns out that the effect of a change in the savings rate on the steady-state consumption is ambiguous. Let's try to show...
1. An increase in saving that leads to more capital accumulation ________ labor productivity. decreases increases...
1. An increase in saving that leads to more capital accumulation ________ labor productivity. decreases increases does not change probably changes but in an ambiguous direction 2. In 2010, of the following ________ had the highest real GDP per person. the Europe Big 4 countries the United States Canada Japan 3. Moving along the aggregate production function shows the relationship between ________, holding all else constant. capital input and real GDP labor input, capital input and real GDP technology and...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT