The gender wage gap in the United States:

Group of answer choices

proves the existence of discrimination.

may be partially due to factors other than wage discrimination.

proves that men on average invest more in human capital than do women.

indicates that men are on average smarter than women are.

Scenario 18-7
Suppose the following events occur in the market for university economics professors.

Event 1: A recession in the U.S. economy lowers the opportunity cost of going to graduate school in economics to become a university economics professor.

Event 2: A decreasing number of students in U.S. primary and secondary schools decreases the number of students entering college and university.

Refer to Scenario 18-7. As a result of these two events, holding all else constant, the equilibrium quantity of university economics professors will

Group of answer choices

increase.

decrease.

not change.

It is not possible to determine what will happen to the equilibrium quantity.

Scenario 27
Suppose the following events occur in the market for university economics professors.

Event 1: A recession in the U.S. economy lowers the opportunity cost of going to graduate school in economics to become a university economics professor.

Event 2: A decreasing number of students in U.S. primary and secondary schools decreases the number of students entering college and university.

Refer to Scenario 27. As a result of these two events, holding all else constant, the equilibrium wages of university economics professors will

Group of answer choices

increase.

decrease.

not change.

It is not possible to determine what will happen to the equilibrium wages.

Other things being equal, what happens to labor supply in the pear-picking market when the wage paid to apple pickers decreases?

Group of answer choices

The labor supply will stay unchanged until the wages paid to pear pickers change.

The labor supply will decrease.

The labor supply will increase.

The labor supply may fall or rise, depending on the price of pears.

Scenario 22
Sam has two jobs, one for the winter and one for the summer. In the winter, he works as a lift attendant at a ski resort where he earns $11 per hour. During the summer, he drives a tour bus around the ski resort, earning $13 per hour.

Refer to Scenario 22. During the winter months, what is Sam's opportunity cost of taking an hour off work to go skiing?

Group of answer choices

$13

between $11 and $13

$11

less than $11

Your college roommate receives a pay raise at her part-time job from $9 to $11 per hour. She used to work 25 hours per week, but now she decides to work 30 hours per week. For this price range, her labor supply curve is

Group of answer choices

vertical.

horizontal.

upward sloping.

backward sloping.

Which of the following could increase the supply of labor in the market for cranberry pickers?

Group of answer choices

(ii) only

(i), (ii), and (iv) only

(i) and (iv) only

(ii) and (iii) only

In 2007, the United States experienced the biggest jump in food prices in 17 years (The Wallstreet Journal, April 1, 2008). A variety of reasons led to this result, including rising demand for meat and dairy products in emerging overseas markets, increased used of grains for alternative fuels, and bad weather in some parts of the world. A survey compared prices in $ of selected products at grocery stores in the Boston area. The dataset is available under: Files -> Dataset -> Mini-case 2 -> Mini2_Grocery In a report, use the sample information to: Determine whether differences exist in the average prices of products sold at the three stores at the 5% significance level Determine whether differences exist in the average prices of the 11 products at the 5% significance level Determine which stores’ prices differ using Fisher’s Least Significant Difference Method, if it is found that differences exist in the average prices among these stores. Use a 5% significance level.

ABC is a United States company that has a manufacturing subsidiary in Brazil. There have been large changes in the USD/BRL exchange rate over the last 5 years and the company has forecasted the following possible exchange rates and subsidiary values over the next year:

(a) Find the exchange exposure coefficient faced by ABC for its Brazilian subsidiary (i.e. find the b estimate from a regression)

(b) Describe in detail a hedge you could put in place to reduce this exchange exposure over the next 12 months using forward contracts.

(c) Show the effect of the hedge on the value of the subsidiary in $ if each state of the world occurs.

1. As stated in the article, “Economists agree that the United States must continue to rack up debt to prevent a full-blown depression. Otherwise, there won't be much of an economy left to repay the debt once the health crisis is over.”

a) Recessions exact a major toll on individuals, families, firms, and budgets throughout the U.S. A key aspect of proper macroeconomic policymaking is to minimize losses by responding quickly and effectively to downturns through fiscal policy. Explain!

b) There are two alternatives to borrowing: 1) raising taxes to fund the stimulus package; or, 2) do-nothing and wait for the economy to self-correct. Explain why each of those options are flawed.

In the United States, according to a 2018 review of National Center for Health Statistics information, the average age of a mother when her first child is born in the U.S. is 26 years old. A curious student at CBC has a hypothesis that among mothers at community colleges, their average age when their first child was born is lower than the national average. To test her hypothesis, she plans to collect a random sample of CBC students who are mothers and use their average age at first childbirth to determine if the CBC average is less than the national average.

a.) State this study as a formal hypothesis test.

??0:

????:

b.) How would the student make a Type I Error in this study?

The curious student gathers her sample. She ends up with a random sample of 22 mothers at CBC. Among her sample, she finds their average age at first childbirth is 24.4 years old, with a standard deviation of 3.6 years. Help our curious student make a decision at the ?? = 0.05 level.

c.) Calculate the Test-Statistic for the test.

d.) Calculate the Critical Value for the test.

e.) Approximate the p-value.

f.) What is your decision? Be sure to interpret your decision in a way that would make sense to someone that is not a statistician.

63% of owned dogs in the United States are spayed or neutered. Round your answers to four decimal places. If 32 owned dogs are randomly selected, find the probability that

a. Exactly 21 of them are spayed or neutered. Incorrect
b. At most 19 of them are spayed or neutered. Correct
c. At least 20 of them are spayed or neutered. Correct
d. Between 15 and 20 (including 15 and 20) of them are spayed or neutered. Incorrect

Suppose the current exchange rate is $1.42/€, the interest rate in the United States is 4.00%, the interest rate in the EU is 6%, and the volatility of the $/€ exchange rate is 20%.

(a). Using the Black-Scholes formula, calculate the price of a three-month European call option on the Euro with a strike price of $1.45/€.

The price of a three-month European call option is-------- $ (round to five decimal places).

The mean cost of domestic airfares in the United States rose to an all-time high of $400 per ticket. Airfares were based on the total ticket value, which consisted of the price charged by the airlines plus any additional taxes and fees. Assume domestic airfares are normally distributed with a standard deviation of $100. Use Table 1 in Appendix B.

a. What is the probability that a domestic airfare is $540 or more (to 4 decimals)?

b. What is the probability that a domestic airfare is $260 or less (to 4 decimals)?

c. What if the probability that a domestic airfare is between $300 and $470 (to 4 decimals)?

d. What is the cost for the 3% highest domestic airfares? (rounded to nearest dollar)
$

The mean cost of domestic airfares in the United States rose to an all-time high of $400 per ticket. Airfares were based on the total ticket value, which consisted of the price charged by the airlines plus any additional taxes and fees. Assume domestic airfares are normally distributed with a standard deviation of $100. Use Table 1 in Appendix B.

a. What is the probability that a domestic airfare is $540 or more (to 4 decimals)?

b. What is the probability that a domestic airfare is $260 or less (to 4 decimals)?

c. What if the probability that a domestic airfare is between $300 and $470 (to 4 decimals)?

d. What is the cost for the 3% highest domestic airfares? (rounded to nearest dollar)
$

1. Dr. Chong, a citizen of Singapore, traveled to Singapore from the United States recently and is quarantined in a 4-star hotel at government expense. The hotel charges SGD 300 per night (with breakfast). Aiden expects to be quarantined for 14 days. What is the cost to the government of the two-week hotel stay in U.S. dollars?
2. Given the following prices, calculate the price of pounds in dollars (how many dollars it takes to buy a pound): $1.08374/€, €1.14212/£         
3. Assume the following: Spot rate ¥110/$ and one-year interest rates in Japan and the U.S. are 2% and 4%, respectively. What is the expected exchange rate in a year?
4. You are trying to decide whether to invest in the U.S. or Switzerland for the next 3 months. The spot rate is $.6667/CHF, the 90-day forward is $.6756/CHF, and the annualized rates on the U.S. T-bill and Swiss government 3 month bonds are 10% and 4.5333%. Is it better to invest in the U.S. or Switzerland?