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Discuss the likely effects of each option on the hours of work among lawyers. (It would help to draw the constraints created by each option.).
A firm is considering hiring a worker and providing the worker with general training. How much will the training firm pay the worker in the training period?
Suppose a firm's labor supply curve is E = 5W, where W is the hourly wage. Express the total hourly labor cost associated with any given level of employment.
Trainees are not paid during the training period. Analyze the likely effects on wages, employment, and hours of work associated with adopting this program.
Use economic theory learned in this course to analyze the effects of the hours cap on skill formation and employment levels.
The manager of a major league baseball team argues. Analyze the manager's reasoning by using economic theory.
Assuming the total premiums paid by employers remain the same, what are the labor market implications of this proposed change in way in which health financed?
How will its employment level be affected in the long run? Explain, being sure to define what you mean by the short run and the long run!
Discuss the creation of a compensating wage differential for these jobs using ordinary supply and demand concepts.
At what level of income does the subsidy end? How many hours of work would this be? Discuss the effect of program participation on work incentives.
Draw the daily budget constraint without program participation for the single parent. What effect does this program have on the incentive to work? Explain.
Draw the income-household time (budget) constraints for the coming year under both offers. (Clearly label which is Company X and which is Y.)
Draw the current daily budget constraint (assume a wage that is net of the hourly child-care costs) for a single mother and then draw in the new constraint.
Draw the daily budget constraints for each of her paid-work options (assume she can work either for the catering service or as a babysitter but cannot do both).
Draw an assumed current daily budget constraint for a single parent and then draw in the constraint that would be created by the $20 subsidy.
What would be the labor supply effects on those workers just beginning their careers (workers in their twenties, for example)?
Assume that a state government currently provides no child-care subsidies to working. Discuss the likely effects on labor force participation and hours of work.
Why Would this policy cause an increase in the labor supply of parents with small children?
What is Teddy's base wage rate? What is Teddy's overtime wage rate? How many hours does Teddy need to work to receive overtime?
Suppose Michael receives $50 per day as interest on an inheritance. His wage rate is $20 per hour, and he can work a maximum. Draw his daily budget constraint.
Calculate the annual income effect from this lottery gain based on a 50-week year. Interpret the results in light of the theory presented in this chapter.
If both leisure and income are normal goods, what is the effect of the shorter commute on Nina's work time?
What hourly base wage will the employer offer so that the total pay for a 10-hour workday will stay the same?
Draw the old and new budget constraints (label each clearly) associated with the DI program, and analyze the work-incentive effects of the change in benefits.
Wages are $12 per hour, and yo-yo-making equipment rents for $4 per hour. Compute the cost minimizing capital-labor ratio at this firm.