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List the factors you think would make stock prices increase and decrease in the Shanghai stock exchange.
Explain how contractionary monetary policy can reduce housing prices. What happens to the price of houses today?
Explain why the DJIA and other stock market indices are more useful after they have been adjusted for inflation.
List three jobs you think probably pay minimum wage and three jobs that you think do not.
Specifically, if labor supply is more elastic, is the deadweight loss smaller or larger? What is the economic intuition behind your answer?
In our discussion of the evidence of the effects of minimum wage changes. Exactly what problem were we referring to?
How would an increase in social security payments affect the choice of workers between jobs in the formal and informal (underground) parts of the economy?
If two states have different rates of labor taxation, what can you say about wages before and after taxes in the two states?
What happens to the rate of unemployment of minimum wage workers if the rate of inflation is lower than expected?
Using the discussion of estimation of labor demand, if you could conduct an experiment to see the effects of a minimum wage increase, what exactly would you do?
Using supply and demand curves in the market for fast food, what are the effects of an increase in the minimum wage in this market?
Find a country that does not have a minimum wage. Do you think the lack of a minimum wage means that workers are badly treated in that country?
What arguments were made to support the minimum wage? What arguments were made against the minimum wage?
What happens if there is a dispute? What role might reputations play in the enforcement of these private agreements?
Everyone expects the government to ration the supply of coffee. What will likely happen to the price of coffee once the forecast is announced?
What effects do you think this has on the buying and selling of liquor near the border of the two states?
What would be the advantages of such a system? What would be the problems?
Explain how the incidence of a new tax on textbooks, collected at the point of sale, will be determined.
Assume that the price of oranges is $1 in the first year and then increases at 10 percent per year. What is the discounted present value of this tree?
Explain why, when we analyze the minimum wage, the elasticity of labor supply affects the unemployment rate but not the employment rate.
In addition, workers in the informal sector do not pay income taxes. What is the effect of this on wage levels in the two sectors?
What would happen to wage differences across regions? What predictions would you have for the flow of workers across parts of China?
What would you have to do to obtain permission to work? What if, instead, you wanted to work in the United States? Does your answer depend on your occupation?
How do you think these inventions have affected the labor participation decisions of women and the wages they are paid?
If under the social contract you decide to provide an incentive for high-ability people to train, what is the distribution of consumption in the economy?