Economics Answers

“If the production of health care generated positive externalities, the welfare costs of moral hazard would be smaller than those suggested by M. Pauly’s analysis”

Suppose Mr. Arslan’s basic salary is Rs 12000. Calculate the allowances (House rent, utility bills, conveyance allowance). Also, find the provident fund and gratuity.

Assume after the economic crises, Greece had increased the tariff rates, which decreased the trade between Germany and Greece significantly. How would this affect the wage and supply of the skilled labor relative to unskilled labor in Germany and Greece, both in the short run and in the long run?

Starting with 1980’s economists within the neoclassical school have increasingly emphasize the
necessity of having a flexible labor market. One of the characteristics of the flexible labor market is increased level of mobility between sectors and occupations. Write a factor that can increase this kind of mobility within the labor market.

Write a factor that may increase the value of education.

3. The profit function for a company is given by the following nonlinear equation:
P(x) = 4x2 – 200x − 25000 where P is the profit in dollars and x is the number of units sold.
3.1.1. Find the profit when 600 units are sold. (1 mark)
3.1.2. Determine the break-even level for this company. (3 marks)

The linear profit equation for a company that sells customized furniture is

Differenciate 2√XY

Choose two occupations. Write which one should pay more according to the mainstream labor
market model and why. Explain your answer. (Your prediction may contradict with actual wage rate between those occupations. As long as your explanation is good enough, your answer will be OK.)

One of the major complaints of the British people for Brexit is, the argument that labor mobility
enforced by EU on England, cause wage level of British workers to fall. Assume this claim of British citizens is correct. Show on two seperate graphs, one representing British labor market, the other labor market of the rest of EU. And show the effect of labor mobility in both markets. Explain in a few words the reason behind this process.