Answer:
Explanation:
From the given information:
The average wage is expected to be paid to both workers since it is difficult tot distinguish between the two types.
w_s = 10
w_N = 20
ω_s = 2.5y
ω_N = 2y
proportion of N types (λ) = 0.25
proportion of S types (1-λ) = 0.75
Thus, the pooling wage = λ_Nw_N + λ_Sw_S
= (0.25 × 20) + (0.75 × 10)
= 5.0 + 7.5
= $12.5
(b)
The separating equilibrium can be computed as follows:
N-type ( High type) : w_N- w_S > ω_N
= 20 - 10 > 2y
2y < 10
y < 5
For an S-type (low type); the cost of education needs to be greater than the increment in wages if the education is acquired.
w_N- w_S > ω_S
If education is acquired, S-type will get wages as of N-types
Thus;
20-10 <2.5y
10 < 2.5y
y > 4
Hence, the value of y= (4,5)
The Fed followed far more expansionary policy in the early 2000s than the Taylor rule suggested because the economy in the following way
Explanation:
1.The Fed acts as a lender of last resort—lending to banks and financial institutions of other nations when no one else will. When households cannot obtain credit from banks, they can get credit directly from the Fed. Thus, the Fed's role as a lender of last resort helps households when no one else will.
2.The U.S. central banking system—the Federal Reserve, or the Fed—has come under heightened focus in the wake of the 2007–2009 global financial crisis, as its role in setting economic policy has dramatically expanded.
Post-crisis, the Fed faced scrutiny for its unorthodox monetary policy, known as quantitative easing (QE), which helped sustain the recovery but ballooned the Fed’s total assets from $869 billion in 2007 to nearly $4.5 trillion in 2017. At the same time, the 2010 Dodd-Frank financial reform redefined the central bank’s responsibility for evaluating the health of the nation’s financial system.
3.Since 2015, the Fed has focused on returning to a more normalized monetary policy. Former Fed Chair Janet Yellen oversaw rising rates throughout 2016 and 2017 and announced the end of QE, a process known as tapering. President Donald J. Trump broke with precedent in 2018 by replacing Yellen with businessman and sitting Fed Governor Jerome Powell, the first non-economist to hold the post since the 1970s. Powell has supported Yellen’s approach to unwinding the Fed’s unorthodox policies, and he continued to raise interest rates despite pushback from President Trump.
Answer: network
Explanation:
Network externality simply states that demand for a good or service has to do with how other people demand for that particular good or service. It means consumer's buying patterns are influenced by the purchase of others buying the product.
Therefore, a network externality exists when the number of customers who purchase a good or use it influences the quantity demanded.
Answer:
$5000
Explanation:
Since Elm City issued a purchase order for supplies with an estimated cost of $5,000, although when the supplies were received, the accompanying invoice indicated an actual price of $4,950, the amount that Elm should credit to encumbrances outstanding in its general fund after the supplies and invoice were received; is $5000
Notice that encumbrances are set aside funds for a purpose, therefore upon ordering, encumbrances balance would increase, and Elm would have passed the following entry
Dr. Encumbrances...$5000
Cr. Fund Balance.....................$5000
Therefore even if the supply came with a shortfall in amount, in order for Elm City to show that the purpose for making that encumbrance has been met, it has to be liquidated by crediting the Encumbrance account by the full amount of $5000