Suppose in India, a minimum wage is instituted in the urban sector above the market clearing wage, whilst the rural traditional wage is market determined at a lower level than in the urban sector. Discuss and show the impact of this policy on the rural traditional wage, the rural labour force, and the urban sector unemployment. Can we expect the urban sector wage to equal to the traditional sector wage after the markets equilibrate through migration?   What effects might the relocation costs and the introduction of factories in rural areas have on the equilibrium discussed in part (a)?

Q: Table 14-4 The following table presents cost and revenue information for a firm operating in a…

A: I am little confused about your question, whether it's just MCQ or the table also needs to be…

Q: MR PD Smith has heard that the government has proposed the imposition of a maximum price or  price…

A: Price control is a government policy or regulation that sets a legal limit on the price at which a…

Q: WAGE W₂ W₂ Figure 18-5 Refer to Figure 18-5. Which of the following would shift the labor supply…

A: Demand curve is the downward sloping curve.  Supply curve is the upward sloping curve.  Equilibrium…

Q: Under Kant's theory, when a company retrenched its employees to boost profit... A Majority happiness…

A: Kant's theory has major implications in behavioral economics. The implications of Kant's theory for…

Q: 17. Opportunity cost and production possibilities Van is a talented artist who sells hand-crafted…

A: Production possibilities frontier shows maximum combinations of two produced with the given…

Q: (a) For the following extensive-form game: 1. Identify the pure and mixed strategy Nash Equilibria…

A: An extensive form game given above has same subgame pure and mixed strategy Nash equilibrium as…

Q: The long run aggregate supply curve is vertical because   a. the aggregate demand curve is…

A: A curve that depicts the relationship between the overall level of prices in an economy and the…

Q: Consumers deposit their total saving, equaling the value of 1, at the bank at t = 0. The bank…

A: Bank run refers to the situation in which a large portion of a bank's customers start withdrawing…

Q: Figure 8-2 Price Level (P) NO I I A ♂ D AD₂ Q, Real GDP (Q) Refer to Figure 8-2. A shift in…

A: The aggregate demand curve will shifts towards the right when aggregate demand components i.e.…

Q: In 1970, the price of a Big Mac was $0.50. Use the information in the table below to find the price…

A: The Consumer Price Index (CPI) is a measure of the average change in the prices of a basket of goods…

Q: As the __________ substitute for low-skill labor becomes available, the demand curve for low-skill…

A: Demand curve is the downward sloping curve.  Supply curve is the upward sloping curve.  Equilibrium…

Q: If the domestic demand curve is the domestic supply curve is Q=10p-0.5 Q = 5p⁰.5 and the world price…

A: Domestic Demand curve; Q=10p-0.5 Domestic supply curve; Q=5p0.5 World price= $5

Q: Use the following graph of the demand for American cheese to answer the question below: 15 Price…

A: For an inferior good, if consumer's income increase its demand decrease at each price level. And if…

Q: 34. If the price elasticity of supply is 1.2, and price increased by 5%, quantity supplied would…

A: Price elasticity of supply refers to the degree of responsiveness of the quantity supplied of a good…

Q: How has inflation led to to changes in the monetary policy.

A: Inflation refers to expansion in the general price level of goods and services in an economy…

Q: Figure 14-2 Suppose a firm operating in a competitive market has the following cost curves: a. $18…

A: A competitive firm is one of many firms that produce identical goods.

Q: A vertical long-run aggregate supply curve shows that: (a) wages and prices are sticky. (b) changes…

A: the vertical AS curve means that the at each level of price we have the same level of output or…

Q: Mobile phones and mobile phone technology have generated significant advances in communication. You…

A: Demand (DD) and supply (SS) curves are graphical depictions of the relationship between the price…

Q: Match the term with the correct description. fiscal policy monetary policy money multiplier discount…

A: Fiscal and monetary policies are are two important financial tools used to regulate economic…

Q: Suppose the European Union (EU) is investigating a proposed merger between two of largest distillers…

A: To estimate the pre- and post-merger prices for Scotch in the wholesale market, we need to consider…

Q: A rotational molding operation has fixed costs of $9,000 per year and variable costs of $54 per…

A: ***Since the calculation of the break-even output would require both cost and revenue functions,…

Q: How does high inflation lead to a recession in the country? Explain the role of the Government and…

A: Inflation is the rate at which the general level of prices for products and services in an economy…

Q: he current exchange rate is $1.00 = 1.50 Swiss franc.  The exchange rate is expected to be $1.00 =…

A: An exchange rate refers to the value of one currency expressed in another currency. It represents…

Q: The graph below depicts an economy where a decline in aggregate demand has caused a recession.…

A: The impact of change in aggregate demand due to the change in government spending is more than that…

Q: Chapter 20: Unemployment Page 656 20.2. What can we learn from the employment data? Based on recent…

A: In the data of the labor market we can notice that there is bias in the labor market based on gender…

Q: Compare the outputs of a monopoly and a duopoly for the following price function. p = 18 -0.005x…

A: As you didn't mentioned which part of this question to solve. Hence I am assuming that you needs…

Q: Define, compare and contrast: (i) A relative poverty line, (ii) an absolute poverty line, (iii)…

A: The minimal amount of money or resources needed to meet basic requirements and preserve a…

Q: Figure 14-1 Suppose that a firm in a competitive market has the following cost curves: PRICE 20 18…

A: In competitive market, there are a large number of firms selling identical goods.

Q: Figure 14-1 Suppose that a firm in a competitive market has the following cost curves: PRICE 20 18…

A: In perfect competition,  There exists a large number of buyers and sellers.  The firm produces…

Q: What is the rationale for international trade?

A: The exchange of commodities and services across international borders is termed ‘international…

Q: Why do consumers fair better under a Stackelberg Oligopoly than a Cournot Oligopoly?

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: what is the derivative of the utility function UU = log (100-2PPii) + log(PPjj+PPdd) with respect to…

A: The degree of satisfaction that a consumer has after consuming a combination of items or services is…

Q: What are the issue in Mexico country of their major challenges/ limitations of these affects in…

A: INTRODUCTION: Mexico faces significant challenges and limitations that affect its public health…

Q: Examine the different economic systems in a country, using examples of your own

A: An economic system is a way of organizing the production, distribution, and consumption of goods and…

Q: Consider a used car market where buyers cannot observe the car's true quality until after purchase…

A: Adverse Selection is described as a market circumstance in which either the seller or buyer has…

Q: Suppose the consumer initially maxizes utility on budget line L¹ at bundle e,. This is where the…

A: The relation between the gift and the present bundle of consumption is on the basis of the utility…

Q: Assignment Attempts: 4 Keep the Highest: /4 5. Distribution of benefits and costs The Parliament,…

A: Any project's predicted benefits and costs can be evaluated using the cost-benefit analysis…

Q: How do apple growers react to the news of medical research findings that suggest that eating apples…

A: Demand curve is the downward sloping curve.  Supply curve is the upward sloping curve.  Equilibrium…

Q: In times of recession what can government do to lessen the economic hardship faced by those who lost…

A: A recession is a period of economic decline characterized by a significant drop in economic…

Q: One of the important events in world trade in recent months has been the escalation of a trade war…

A: A trade war is what is going on where nations increment tariffs, portions, or other trade hindrances…

Q: Refer to the graph shown. Assume the market is initially in equilibrium at point j in the graph but…

A: The initial supply curve is S0.  Hence, the equilibrium before the imposition of tax takes place at…

Q: Refer to Table 13-9. The marginal products of hiring additional workers are a. increasing at a…

A: Marginal product is the change in output gained from hiring an additional unit of labor.

Q: If contractionary policy brings output below the full-employment level of GDP the short-run…

A: The total amount of final goods and services produced in an economy in a year- Gross Domestic…

Q: Present a Sweezy model, show a cost change, and show that the optimal choice for the firm is to…

A: The Sweezy model is an economic theory that describes how businesses behave in markets with…

Q: Spot exchange can be inefficient in the presence of

A: In a spot exchange, two parties exchange their goods or services for money or other kinds of payment…

Q: Given a demand function Q=f(P), the own price elasticity of demand is defined as e= (dº) · (²). WL

A: Price elasticity of demand measures the percentage change in quantity demand due to a change in…

Q: Consider a tiny hypothetical economy composed entirely of the following people: Jake, Latasha, Nick,…

A: The Bureau of Labor Statistics (BLS) defines the criteria for categorizing the labor force as…

Q: Why do government entities impose taxes and how is the type of taxation chosen (e.g., excise v.…

A: The process of levying a financial charge, known as a tax, on individuals, businesses, and other…

Q: Suppose a manufacturer of software develops a new computer program that sells for $50. The $50 cost…

A: Value added is a way to quantify the economic value produced when producing goods or services. It is…

Q: Suppose Latasha is a sports fan and buys only baseball caps. Latasha deposits $3,000 in a bank…

A: Suppose Latasha is a sports fan and buys only baseball caps.  The price of baseball caps is $10.…