Principles of Economics, 7th Edition (MindTap Course List)
Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN: 9781285165875
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 19, Problem 4PA

Sub-part (a):

To determine

Compensation for economics professors.

Sub-part (b):

To determine

Compensation for economics professors.

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Classify the following as microeconomics or macroeconomics and provide a justification for the choice 1. Airlines projects a drastic reduction in international travel for this quarter. This might result in the layoffs of workers 2.The impact of an increase in the price of computer chips on the market for personal computers 3. The relationship between the inflation rate and changes in the quantity of money 4. The decision by Mc Donald's to hire fewer workers because of an increase in the minimum wage
Suppose that there is an excess supply of economics professors. Should universities necessarily reduce salaries? What does standard economic theory suggest? What does efficiency-wage theory suggest (Explain with diagram)
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