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    1. Automatic teller machines (ATMs) have substituted for human bank tellers through a substitution effect that replaces labor with capital. This leads to lower output but also lower costs, with the net effect depending on the relative size of these changes. 2. CEO pay reflects the supply and demand for CEO talent and positions. High pay indicates the skills required are rare and in high demand. Studies show a relationship between company size and pay level, supporting the idea that larger, more complex companies require rarer skills. 3. Labor unions arose to give workers more bargaining power against employers but have faced challenges in economic downturns. Unions have survived by negotiating concessions from employers during crises to preserve jobs

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    1. Automatic teller machines (ATMs) have substituted for human bank tellers through a substitution effect that replaces labor with capital. This leads to lower output but also lower costs, with the net effect depending on the relative size of these changes. 2. CEO pay reflects the supply and demand for CEO talent and positions. High pay indicates the skills required are rare and in high demand. Studies show a relationship between company size and pay level, supporting the idea that larger, more complex companies require rarer skills. 3. Labor unions arose to give workers more bargaining power against employers but have faced challenges in economic downturns. Unions have survived by negotiating concessions from employers during crises to preserve jobs

    Copyright:

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    5 views2 pages

    Applied Economics Test 1

    Uploaded by

    joostpompe
    1. Automatic teller machines (ATMs) have substituted for human bank tellers through a substitution effect that replaces labor with capital. This leads to lower output but also lower costs, with the net effect depending on the relative size of these changes. 2. CEO pay reflects the supply and demand for CEO talent and positions. High pay indicates the skills required are rare and in high demand. Studies show a relationship between company size and pay level, supporting the idea that larger, more complex companies require rarer skills. 3. Labor unions arose to give workers more bargaining power against employers but have faced challenges in economic downturns. Unions have survived by negotiating concessions from employers during crises to preserve jobs

    Copyright:

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    CASE STUDIES APPLIED ECONOMICS (IBMEC308R2) : BLOCK 4 Economics, 18TH Ed.

    Address the following questions by writing a short essay on each question (150-200 words) CASE Chapter 12 1) Last Word: Input Substitution: The Case of ATMs, p. 266 Automatic Teller Machines are rapidly replacing human tellers.. Describe the substitution effect, output effect and in the end net effect of this development. CASE Chapter.13 2) Last Word: Are CEOs Overpaid?, p. 287 What does multimillion-dollar pay say about supply and demand for CEO positions. (reflect in your writing on qualifications needed for a CEO position and find proof for your arguments in Figure 13.10 on page 283 and in other sources. 3) Appendix Ch. 13: Labor Unions and Their Impacts, p. 290-294 Explain how Labor Unions came into existence and how did Unions manage to survive in times of economic crisis. CASE Chapter 14 4) Last Word: Determining the Price of Credit, p. 308-309 It has oftentimes been said that the U.S. economy is based on debt. Why then would banks penalize customers with a $ 35 fee for overdrafting their checking accounts Solve the following 2 problems ( see Last Word) : A. UNI-BANK advertising a 10 % interest rate compounded semi-annually pays more interest than its competitor paying a non-compounded interest rate of 10.2 %. Show calculation. Data: deposit $ 10,000 in savings account. Interest rate 10 % B. UNI-BANK lends you $ 10,000, and charges interest of $ 1,000 to be paid at the end of the year. The loan needs to be repaid in 12 equal installments. Calculate the interest rate you have paid on average. CASE Chapter 15 5) Last Word: Is Economic Growth Bad for the Environment?, p. 330-331 Rich countries have in general higher EPI-scores than developing nations. Explain alongside economic theory ,the massive environmental pollution in emerging economies.

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