International Trade

What are the major challenges confronting the international trading system? when you are looking at countries such as CHINA and INDIA When is international trade an major opportunity for workers? When is it a major threat to workers?

Labor Economics

Assume a firm is operating in a perfectly competitive product market where the price of its output can be sold at a price p=$10. The firm can hire any number of workers at a wage of W=$50. The total product (or short-run production function) is given by Q=100*L-2.5*Lsquared, and the marginal product of labor curve is MPL=100-5*L. Using this information, determine the optimal number of workers the firm will hire, the quantity of output it will produce, and the profit it will make in the short run. Assume that there are no costs to capital.

Labor Economics

CEO pay appears to be on the rise again. Additionally, executive pay in the U.S. is about 20 times higher than it is in European countries. Explain three theories about CEO pay and evaluate, whether they can explain why 1) executive pay is so much higher than the pay of an average worker, 2) it does not vary much with the value of the firm, and 3) it is so much higher in the U.S. compared to Europe.

Labor Econ

Congress frequently considers proposals to reduce the rate at which capital gains are taxed (i.e. lowering the costs of capital). Proponents believe that the reduced capital gains tax rate would encourage businesses to expand and hire more workers. Opponents argue that such a tax cut would primarily benefits stockholders. Although it is an important aspect of the debate, for the purposes of this question, you may ignore the effects that the proposed tax cut would have on the federal governments budget deficit. a) Do proponents of the capital gains tax cut believe that labor and capital are gross complements or gross substitutes? What do opponents believe about the magnitudes of the subst... click for more

Assume that you have the following information about a country:

Assume that you have the following information about a country: Percentile of population Income in Billions %share cumm value Bottom 20% $300 5% 5% 2nd 20% 500 8 13 3rd 20% 900 15 28 4th 20% 1,500 25 53 5th 20% 2,800 47 100 a) dr... click for more