Answered: Why don’t wages measure the full return…

Why don’t wages measure the full return to labor? Why is human capital the most important factor of production in a modern economy?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter16: Economic Growth

Section: Chapter Questions

Problem 14E

See similar textbooks

Related questions

Q: Cooperation in a Finite Game We have seen that if we play the Prisoners' dilemma with finite…

A: A Finite Game is defined as a game where there are fixed number of players, the players have a fixed…

Q: Suppose a monopolist expects to encounter 7 customers on a typical day. Their reservation prices are…

A: There are 7 customers with theirs willingness to pay and the mC of product is $58

Q: What would you expect the relationship to be between selling a high-risk product and a low-risk…

A: When talking about personal selling, it is the form of business in which an individual or am…

Q: 0.50.5 Adam's preferences are represented by the utility function u(x1, x2) = x?5x25. The prices of…

A: Answer: Given, Utility function: ux1,x2=x10.5x20.5Price of x1=p1Price of x2=p2Income=I (a). The…

Q: Let preferences of both individuals be given by log(ci)+ log(c). Suppose that the endowment vectors…

A: Market supply of both the goods are the sum of endowments.

Q: The demand for a factor of production is called a derived demand because it is derived from O A. a…

A: Derived demand is the demand that is derived from demand from some other commodity. For eg: you want…

Q: Does the game has any Nash equilibrium ? If your answer is "Yes", then you are required to identify…

Q: Revenue and cost (dollars per unit) MC AVC 50 40 30 20 10 10 30 40 50 Output (units per day) The…

A: For a perfectly competitive firm, prices are given. And it should produce and sell output at this…

Q: 1. A) Discuss the relationship between trade and economic growth. What are the key channels through…

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

Q: By monitoring the worker force, how can we increase productivity

Q: When a perfectly competitive industry is taken over by a monopoly, some consumer surplus is…

A: The difference between perfectly competitive firm and the monopoly firm is the difference in their…

Q: Saudi Arabia is an oil exporting country. AD : Y = 710 − 30P + 5G+3Poil， AS : Y = 10 + 5P − 2Poil…

Q: b. A Single firm, protected by a barrier to entry, produces a personal service that has no close…

A: since you have asked multiple questions and according to policy we can solve only 1 question and for…

Q: Compared to setting a single price, if a firm can price discriminate it makes a lower economic…

A: in monopoly market, 1) there is only single seller in the market with full control over the market…

Q: A projet cost $500000 and yield annually a profit of $80000 after depreciation @ 12 % p.a but before…

A: Payback period is the the amount of time it takes to recover the cost of an investment , Here we…

Q: Chuck owns a factory that produces leather footballs. His total fixed cost equaled $86,000 last…

A: Total cost is defined as the sum of all the expenses being faced by the producer in order to produce…

Q: Question #6: Consider a Cournot duopoly, the firms face an (inverse) demand function: Pb = 215 -…

A: Given; Demand function; Pb=215-7Qb Marginal Cost for firm1; MC1= 3Q Marginal Cost for firm2; MC2= 9Q…

Q: Figure 1 Refer to Figure 1. If the economy is currently producing at point Y, what is the…

A: 1. At the points Y and W, the production of paper is the same that is 9. While the production of…

Q: A life insurance company wishes to examine the relationship between the amount of life insurance…

A: We have given the data on amount of life insurance held by a family and family income The linear…

Q: What is a wage differential and minimum wage? Which of these concepts represent a price floor or…

A: The firms and businesses tend to use various types of factors of production, which are in the form…

Q: Suppose that Andrew’s Hotel will be open for only two days: a peak season day and an off-peak day.…

A: Peak Demand : P = 1000 - Q Off Peak Demand : P = 500 - 2Q Cost of building a room = 400 Cost of…

Q: A life insurance company wishes to examine the relationship between the amount of life insurance…

A: We have data of X and Y to get the regression equation.

Q: Is the lottery a fair way to allocate economic resources? Discuss, referring to both of the…

A: "Investing in stocks is like gambling in a casino" True, both investing and gambling include some…

Q: (PERFECT-INFO GAME) Consider the game shown at the right. a. What is the number of pure strategies…

A: We have answered only the first two questions for you, i.e. part (a) and (b) Given, Two Players :…

Q: 1. Given the equilibrium of IS and LM, an increase in the equilibrium interest rate would cause…

A: (Since you have asked many questions, we will solve the first one for you. If you want any specific…

Q: Hidden Valley has two nail salons, one owned by Pat and the other owned by Danny. Suppose that Pat…

A: Given; There are 2 nail salons in Hidden Valley. Pat and Danny have two strategy:- 1) To collude.…

Q: giving the following information C= 20+4/5Yd T=5+1/5Y I=18 and G=20 find out equilibrium levels of…

A: It is given to us that C=20+4/5yd T=5+1/5Y I = 18 g=20

Q: Q 1/ Given a random variable having the normal distribution with u=16 and o?=1.5625. Find the…

A: We have mean value 16 and standard deviation 1.25

Q: Consider twd, developed and developing countries, the population growth rate of developed countries…

A: Given that; The population growth rate of developed countries is 2 % per year Saving rate = 30% The…

Q: Question 1 Problems and Applications Morocco and Tunisia each has 50,000 hours of labor per month.…

A: Given: Labor hours of each country: Morocco: 50000 Tunisia: 50000 Note: Due to multiple subparts…

Q: The graph shows the cost curves, demand curve, and marginal revenue curve of a firm in monopolistic…

A: In monopolistically competitive market, the sellers sell differentiated produces which are close…

Q: Recommend 3 specific ways that are in line with the related Sustainable Development Goal to raise…

A: Sustainable Development Sustainable economic development means development that take place without…

Q: 5. A firm has the capacity to produce 1,000,000 units of product per year. At present, it is able to…

Q: A firm must decide between two designs. Their effective income tax rate is 33%, and MACRS…

A: Given information Two design Design A: Initial investment =$940000 Net revenue=$260000 Salvage…

Q: Need help with both. These are true or false questions. Monetary policy involves changes to…

Q: The set of lines below reflect information about the cost structure of a firm. Use the figure to…

A: In a market, a firm's cost curves helps to analyze its production efficiency at different output…

Q: 1. Consider a palletizer at a bottling plant that has a first cost of $150,000, operating and…

A: The equivalent annual cost (EAC), for example, is a useful measure in capital budgeting. While…

Q: Assume the following functions are for the goods market of a hypothetical economy: (1) I = 150 -…

A: IS curve shows the goods market equilibrium. It shows the interest rate levels at which investment…

Q: 2. What are the limits on political society and government according to Locke, and what is the basis…

A: John Locke (1632–1704), a political philosopher, is recognised as one of the most influential…

Q: Hot-dogs (P = $1) Apple pie slices (P=$2) Hot-dogs Total MUMU/P Apple pie Total MUMU/P…

A: We have price of hot dog is $1 and price of an apple pie slice is $2 and income of $9

Q: Suppose we allocate a fixed supply of a depletable resource between two periods in a dynamically…

A: Given; Demand function; P=8-0.34q Marginal Cost= $2 per unit Total supply in two period= 20 units…

Q: Suppose Ming spends his entire income on two goods, X and Y, has "standard-looking" indifference…

A: Consumption is the intermediate or ultimate process through which institutional units consume items…

Q: The figure below illustrates the effect of an excise tax (per unit tax) imposed on sellers (S means…

A: Equilibrium in the market occurs at the intersection of demand and supply curves.

Q: Compare the long-run equilibrium position of a perfectly competitive firm and a monopolist.…

A: Perfectly competitive firm is one of many firms and monopoly is a single firm in the market

Q: Bower likes to plant trees in his front year. His neighbors also derive pleasure form the trees in…

Q: Q-2 Compute the (a) Number of unemployed, (b) Unemployment-rate, (c) Population, and (d) Labor…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Colluding firms, compared with competing firms, usually - a. earn less economic profit. b. welcome…

A: Collusion is a non-competitive, secret, and often illegal agreement between rivals to destabilize…

Q: PROBLEM NO.1 Compute the PW: $3500 market value productivity attributable to equipment për year…

A: Given: Initial investment=$23500 Interest rate=18% Revenue from year 1 -5=$8500 Market Value=$3500

Q: The investor plans to invest 2000 UAH and chooses between two investment options: one-year bond that…

A: Bond refers to the financial instrument that is used in exchange for receiving investments from…

Q: A firm sells bagels for £0.52 each. With 6 workers the firm produces 48 dozen per hour, and with 7…

Question

Why don’t wages measure the full return to labor? Why is human capital the most important factor of production in a modern economy?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

What is the difference between labor and human capital? How can human capital be increased?
How is it possible for labor productivity to increase if output is falling?
What are the two main factors that affect labor productivity?
Suppose that a person's life is divided into two periods. A period of poor economic times, when this person earns $28 per hour of work, and a period of good economic times when they earn $42 per hour. The person cannot work more than 2000 hours in a single period, but they want to earn $107,000 total across both periods. What is the minimum number of hours this person needs to work total? Round your answer to two decimal places. Then take a second and thing about what is happening to GDP in each time period and connect the dots to Real Business Cycle Theory.
‌According to an article by the Wall Street Journal, the U.S. is at risk of running out of occupational therapists, railroad engineers, mathematicians, machinists and other workers. As a result, In the next 10 to 15 years, we expect U.S. employers to demand more labour than will be available, which will, in turn, constrain overall economic growth. On the top of that, U.S. president Donald J. Trump has put executive orders to ban nationals of selected countries from entering the U.S. Meanwhile, the top economic analysts and leaders believe that the country is going to strengthen and tighten its immigration polices to a much greater extent in the coming days. a) Referring to the above extract, briefly state in a line what do you think will happen to the U.S. labour market. b) With the help of appropriate diagrams, graphically show and briefly comment on what will happen to the U.S. real wage rate, labour hours and real GDP, due to the changes in the U.S. labour market that you stated in…
What is the relationship between average production and managerial production?
Write the production function in its simplest form (human capital being included in TFP) and explain the nature of each factor of production.
Fishyland is a small country that focuses on her fishing industry. She has a production function of Y = 60L0.4K 0.6 . where L is labour and K is capital. a. Calculate the real wage rate of labor. b. Suppose the World Bank grants more fishing tools to Fishyland. From the answer in (a), will a typical labor in Fishyland benefit from this? Explain.
Give Some examples of different types of productivity measures?
I have two questions. 1. What are three reasons a worker's wage might be above the level that balances supply and demand? 2. Explain the difference between physical capital and human capital?
What are the three factors that impact productivity? Provide an example for each factor describing how productivity is impacted.
Say that the average worker in the U.S. economy is eight times as productive as an average worker in Mexico. If the productivity of U.S. workers grows at 2 for 25 years and the productivity of Mexicos workers grows at 6 for 25 years, which country will have higher worker productivity at that point?