Chapter5
... Roughly 30% of the wage gap between states disappeared over a 30year period (states with lowest wages had highest growth rate) ...
... Roughly 30% of the wage gap between states disappeared over a 30year period (states with lowest wages had highest growth rate) ...
A Formal Explanation to the Law of Demand and the Giffen Paradox
... 1. Nominal Income: The value of a consumer’s income measured in terms of current dollars and cents. For example, Mr. Jones monthly income is $25, 000. 2. Real Income: The purchasing power, that is, the amount of goods and services the income of a consumer can purchase or the value of a consumer inco ...
... 1. Nominal Income: The value of a consumer’s income measured in terms of current dollars and cents. For example, Mr. Jones monthly income is $25, 000. 2. Real Income: The purchasing power, that is, the amount of goods and services the income of a consumer can purchase or the value of a consumer inco ...
Name: Date: ______ 1. The basic aggregate supply equation
... inflation rate increases to π2 , but the unemployment rate remains at un. There is no short-run tradeoff between inflation and unemployment in the short run or in the long run. ...
... inflation rate increases to π2 , but the unemployment rate remains at un. There is no short-run tradeoff between inflation and unemployment in the short run or in the long run. ...
Price Floors
... The tariff of amount T would rise the price to the consumer to P*. At this price, consumers would demand the number of Japanese cars they did before the rise in the gas prices. ...
... The tariff of amount T would rise the price to the consumer to P*. At this price, consumers would demand the number of Japanese cars they did before the rise in the gas prices. ...
YED and XPED
... • An increase in income will lead to a decrease in demand • They have a negative income elasticity • Egs. Bus transport- consumers switch from buses to cars when they can afford their own cars Other examples? ...
... • An increase in income will lead to a decrease in demand • They have a negative income elasticity • Egs. Bus transport- consumers switch from buses to cars when they can afford their own cars Other examples? ...
the inability of small firms to generate employment in a high wage
... a compression of the lower tail of the earnings distribution, associated with an absence of small firms. Once controlling for this and other measures of industrial structure and unionisation, the wage curve re-emerges, suggesting that large firms and collective bargaining are driving up wages and un ...
... a compression of the lower tail of the earnings distribution, associated with an absence of small firms. Once controlling for this and other measures of industrial structure and unionisation, the wage curve re-emerges, suggesting that large firms and collective bargaining are driving up wages and un ...
Employment and Wages 1
... The CPI market basket represents all the consumer goods and services purchased by urban households. Price data are collected for over 180 categories, which BLS has grouped into 8 major groups. These major groups, with examples of categories in each, are as follows: • Food and beverages (ham, eggs, c ...
... The CPI market basket represents all the consumer goods and services purchased by urban households. Price data are collected for over 180 categories, which BLS has grouped into 8 major groups. These major groups, with examples of categories in each, are as follows: • Food and beverages (ham, eggs, c ...
Chapter 11 Review Questions
... B) horizontal when there is considerable unemployment in the economy. C) downsloping because of the interest-rate, real-balances, and foreign purchases effects. D) downsloping because production costs decrease as real output rises. 3. The interest-rate and real-balances effects are important because ...
... B) horizontal when there is considerable unemployment in the economy. C) downsloping because of the interest-rate, real-balances, and foreign purchases effects. D) downsloping because production costs decrease as real output rises. 3. The interest-rate and real-balances effects are important because ...
Class Notes - Chapter 1 - Ten Principles of Economics
... o 2006 – Average income for: American - $44,260; Mexican - $11,410; Nigerian - $1,050. How do you think the quality of life (standard of living) varies in these countries? o Living standards can change over time; historically 2% increase/year (after inflation adjustment). At that rate, the average i ...
... o 2006 – Average income for: American - $44,260; Mexican - $11,410; Nigerian - $1,050. How do you think the quality of life (standard of living) varies in these countries? o Living standards can change over time; historically 2% increase/year (after inflation adjustment). At that rate, the average i ...
Quantitative Reasoning What Is It?
... • Expressing a solution so that an audience understands what the solution means • In class discussion or presentations, can you (for instance) explain the concept of wage elasticity of demand, apply it to the question of teenage employment in fast food restaurants and explain the effect of an increa ...
... • Expressing a solution so that an audience understands what the solution means • In class discussion or presentations, can you (for instance) explain the concept of wage elasticity of demand, apply it to the question of teenage employment in fast food restaurants and explain the effect of an increa ...
Chapter 3 Demand and Supply
... wake of the creation or escalation of a government-mandated minimum wage, because they lose their jobs or fail to find jobs when they enter the labor force. Making it illegal to pay less than a given amount does not make a worker’s productivity worth that amount—and, if it is not, that worker is unl ...
... wake of the creation or escalation of a government-mandated minimum wage, because they lose their jobs or fail to find jobs when they enter the labor force. Making it illegal to pay less than a given amount does not make a worker’s productivity worth that amount—and, if it is not, that worker is unl ...
Middle-class squeeze
The middle-class squeeze is the situation where increases in wages fail to keep up with inflation for middle-income earners, while at the same time, the phenomenon fails to have a similar impact on the top wage earners. Persons belonging to the middle class find that inflation in consumer goods and the housing market prevent them from maintaining a middle-class lifestyle, making downward mobility a threat to aspirations of upward mobility. In the United States for example, middle-class income is declining while many goods and services are increasing in price, such as education, housing, child care and healthcare.