Consider an economy with two sectors: manufacturing and services. Demand for labor in manufacturing and services are described by these equations: Lm=1301–21Wm Ls=1221–23Ws where L is labor (in number of workers), W is the wage (in pesos), and the subscripts denote the sector. The economy has 505 workers who are willing and able to work in either sector. a. If workers are free to move between sectors what relationship will there be between Wm and Ws

b. Suppose that the condition in part a holds and wages adjust to equilibrate labor supply and labor demand. Calculate the wage and employment in each sector.

c. Suppose a union establishes itself in manufacturing and pushes manufacturing wage to 25. Calculate employment in manufacturing.

d. In the aftermath of the unionization of manufacturing, all workers who cannot get the highly paid union jobs move to the service sector. Calculate the wage and employment in services

e. Now suppose that workers have a reservation wage of 15 dollars= that is, rather than taking a job at a wage below 15 dollars, they would rather wait for a 25 dollar union job to open up. Calculate the wage and employment in each sector. What is the economy’s unemployment rate?

Select the word from the list that best fits the definition sometimes

Gulliver travel agencies thinks interest rates in europe are low. the firm borrows euros at 5 percent for one year. during this time period the dollar falls 11 percent against the euro. what is the effective interest rate on the loan for one year? (consider the 11 percent fall in the value of the dollar as well as the interest payment.)

Cooper sues company a in state court in south carolina, where he lives, for negligence alleging personal injury and property damage of $100,000 after a truck driven by an employee of company a rear-ended his pickup truck. company a is incorporated in delaware, has its headquarters in new york, but does a substantial amount of business in south carolina. claiming diversity of citizenship, company a seeks removal to federal district court, but cooper opposes the motion. which of the following is true regarding whether the case may be properly removed to federal district court? the amount in controversy satisfies diversity requirements; and if company a's nerve center is in a state other than south carolina, then the case may be properly removed to federal court.the amount in controversy satisfies diversity requirements; and because company a is incorporated and has its headquarters in a state other than south carolina, the case may be properly removed to federal court.because the amount in controversy satisfies diversity requirements and company a is incorporated in a state other than south carolina, the case may be properly removed to federal court regardless of where company a's headquarters, nerve center, or principal place of business is located.because the amount in controversy satisfies diversity requirements and company a is headquartered in a state other than south carolina, the case may be properly removed to federal court regardless of where company a is incorporated and regardless of the location of its nerve center.because the amount in controversy fails to satisfy jurisdictional requirements, regardless of the location of company a, the case may not be removed to federal court.