As you may have learned in courses in microeconomics, whenworkers’ wages rise, their decision about...

As you may have learned in courses in microeconomics, when workers’ wages rise, their decision about how much time to spend working is affected in two conflicting ways. The income effect is the impulse to work less because greater incomes mean workers can afford to consume more leisure. Thesubstitution effect is the impulse to work more because the reward for working an additional hour has risen (equivalently, the opportunity cost of leisure has gone up).

Productivity increases have pushed real wages higher in both Europe and the United States over the last few decades. Blanchard’s hypothesis uses geographic differences in cultural preferences to explain why hours of labor per worker in the United States differ from those in Europe. Apply the income and substitution effect concepts to Blanchard’s hypothesis and answer the questions below.

As real wages have increased over the last four decades, hours of labor per worker have (remained constant/risen) in the United States and (remained constant/fallen) in Europe.

These data suggest that the (substitution/income) effect was dominant in most workers' preferences in Europe

They also suggest that the income effect (dominant over/is roughly equal to) the substitution effect in most workers' preferences in the United States.

Expert Solution

As real wages have increased over the last four decades, hours of labor per worker have (remained constant/risen) in the United States and (remained constant/fallen) in Europe.

These data suggest that the (substitution/income) effect was dominant in most workers' preferences in Europe

They also suggest that the income effect (dominant over/is roughly equal to) the substitution effect in most workers' preferences in the United States.

Europeans work less hours than Americans. One clarification is that the higher pay charge rates in Europe lessen the motivating force to work. A subsequent clarification is a bigger underground economy in Europe because of more individuals endeavoring to sidestep the high duty rates. A third clarification is the more noteworthy significance of associations in Europe and their capacity to can foresee diminished work hours. A last clarification
depends on inclinations, whereby Europeans esteem leisure more than Americans do, and thus choose to work less hours.

Rahul Sunny answered 2 years ago

You have now read and learned about fiscal policy and the impact that it may have...

You have now read and learned about fiscal policy and the impact that it may have on our debt. With everything you have learned thus far, do you believe that fiscal policy is a good thing for the economy? In what ways may it be bad and/or good for the economy? If you could choose between Keynsian Fiscal Policy or letting the economy self-correct what would you choose?

Consider what you have learned about barriers to change - barriers may come from an organization,...

Consider what you have learned about barriers to change - barriers may come from an organization, an individual, or from the research itself. When you think about implementing your EBP project, what barriers might you face? Organization? Individuals (immediate management, coworkers, etc.)? The research (is it unclear, difficult to apply to your current practice area, etc.)?

List engineering applications of “Scalar Fields” and “Vector Fields”. Explain in which courses you have learned...

List engineering applications of “Scalar Fields” and “Vector Fields”. Explain in which courses you have learned about the applications of these fields. (What is a Tensor? and have you heard about Tensor fields?). Explain the meaning of the term “Conservative” and its applications. What is the relation between this term and the operators Gradient and Curl?

Microorganisms give rise to... 1. Mitochondria (Not sure about this one. We learned about endosymbiosis and...

Microorganisms give rise to... 1. Mitochondria (Not sure about this one. We learned about endosymbiosis and how the mitochondria may have started out as a microbe that over time became integrated into cells, but I'm not sure if that counts) 2. DNA (I think this is a choice because microorganisms have DNA!) 3. Microorganisms (I think this is a choice because microorganisms reproduce and thus give rise to other microorganisms) 4. Proteins (I feel like this should be one because...

You are thinking about registering three courses in Fall 2018. There are three courses that you...

You are thinking about registering three courses in Fall 2018. There are three courses that you are interested in, which will be taught by three professors. Based on prior experiences and conversations with your colleagues with these courses, you have work a “complexity table” (shown below) that illustrated your expectation on the complexity of each course (the higher the number, the more complex you expect the course to be with that professor.) Course ? Professor 1 Professor 2 Professor 3...

Now that you have learned about the Keynesian perspective, what do you think about it? In...

Now that you have learned about the Keynesian perspective, what do you think about it? In your post, be sure to describe they Keynesian viewpoint and how they would use both fiscal and monetary policy to achieve their goals. Do you think Keyes was right? Why or why not?

that have you learned about yourself as a learner and student in transitioning to this environment?...

that have you learned about yourself as a learner and student in transitioning to this environment? Comment on your most significant accomplishments (academic and personal); some of the difficult challenges (academic and personal) you have faced and how you dealt with them? What advice would you offer to an incoming first year student ?

This week you learned about mental health and law. You also learned about the case of...

This week you learned about mental health and law. You also learned about the case of Andrea Yates. Your discussion is two fold. Part A: Having read about Andrea Yates, answer the following questions keeping her in mind: How should judicial system prosecute a mentally disturbed offender who has committed a serious crime? When answering this question, think about jury selection (should the jury receive training in mental illness). Think about the judges presiding over these cases (should the judge...

Question 1: This question may be completed independently or as a group exercise. You have learned...

Question 1: This question may be completed independently or as a group exercise. You have learned that humans have 46 total chromosomes, and chimpanzees have 48 total chromosomes. Use other textbooks in biological anthropology and biology (or reputable online resources) to find the number of chromosomes in other organisms. Give an organism with considerably more chromosomes than humans. Give an organism with considerably fewer chromosomes than humans. Did your findings surprise you? What did your research suggest about the relationship...

As you have learned about the informational processing model of memory, you have probably been able...

As you have learned about the informational processing model of memory, you have probably been able to apply a lot of what you have learned to your own studies in school. What techniques have worked for you in this class to help you remember "psychology." If you came up with any mnemonics, please put them in your answer. Also, consider times that your memory failed you in this class. Explain why you forgot. Use the terms psychologists use when they...

Question