The real wage earned by any worker is determined by that worker's marginal productivity Let's use this insight to examine the incomes of two groups of workers farmers and barbers (a)Over the past century, the productivity of farmers has risen substantially because of technological progress According to the neoclassical theory, what should have happened to their real wage (b)In what units is the real wage discussed in part (a) measured (c)Over the same period, the productivity of barbers has remained constant What should have happened to their real wage (d)In what units is the real wage in part (c) measured (e)Suppose workers can move freely between being farmers and being barbers What does this mobility imply for the wages of farmers and barbers (f)Whats previous answers imply for the price of haircuts relative to the price of food (g)Who benefits from technological progress in farmingfarmers or barbers

The Answer is in the image, click to view ...

Question: The real wage earned by any worker is determined by that worker's marginal productivity. Let's use this insight to examine the incomes of two groups

The real wage earned by any worker is determined by that worker's marginal productivity. Let's use this insight to examine the incomes of two groups of workers: farmers and barbers.

(a)Over the past century, the productivity of farmers has risen substantially because of technological progress. According to the neoclassical theory, what should have happened to their real wage?
(b)In what units is the real wage discussed in part (a) measured?
(c)Over the same period, the productivity of barbers has remained constant. What should have happened to their real wage?
(d)In what units is the real wage in part (c) measured?
(e)Suppose workers can move freely between being farmers and being barbers. What does this mobility imply for the wages of farmers and barbers?
(f)Whats previous answers imply for the price of haircuts relative to the price of food?
(g)Who benefits from technological progress in farmingfarmers or barbers?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Draw the free-body diagram for the following problems. a) The lamp in Prob. 519. b) The rod in Prob. 520. c) The assembly in Prob. 521. d) The beam in Prob. 522. 0.3 m 0.4 m 0.15 m C B -0.5 m- G

5. According to the neoclassical theory of distribution, the real wage earned by any worker equals that workers marginal productivity. Lets use this insight to examine the incomes of two groups of...

According to the neoclassical theory of distribution, the real wage earned by any worker equals that workers marginal productivity. Lets use this insight to examine the incomes of two groups of...

5. According to the neoclassical theory of distribution, the real wage earned by any worker equals that workers marginal productivity. Lets use this insight to examine the incomes of two groups of...

=+ 6. According to the neoclassical theory of distribution, the real wage earned by any worker equals that workers marginal productivity. Lets use this insight to examine the incomes of two groups of...

3. According to the neoclassical theory of distribution, the real wage earned by any worker equals that workers marginal productivity. Lets use this insight to examine the incomes of two groups of...

1. According to the neoclassical theory of distribution, the real wage earned by any worker equals that worker's marginal productivity. Let's use this insight to examine the incomes of two groups of...

According to the neoclassical theory of distribution, the real wage earned by any worker equals that worker's marginal productivity. Let's use this insight to examine two groups of workers: urban...

Please fully answer the following questions about the case in your report: Summarize and discuss the core issue in the case. Do not repeat the entire case details but only pertinent information at...

The one i struggled to understand is the part b) why is the formula like that and e) does it mean by the REAL wage are the same? Q19. Farmers & barbers. The real wage earned by any worker is...

Wilma Golding is retiring and has the option to take her retirement as a lump sum of 225000 or to receive 24000 per year for 20 years Wilma's required rate of return is 8 percent. requirement...

Explain the difference between clustering and classification.

Danica, age 5 9 ( 1 ) / ( 2 ) , was employed full time at JMG Corporation but was recently laid off. The company has 2 5 full time and 1 0 part time employees but does not offer group health...

33 Gasoline is a mixture of hydrocarbons containing benzene (CoH6), toluene (CyHg), ethylbenzene (CgH10) and xylene (CgH10; BTEX) that are often added to boost octane ratings. BTEX are highly...

Grossman corp . uses the equity method in accounting for its 10% stake in Orton inc. the book value of Grossman's investment in Orton was $20,000 at the start of the year. at the end of the year, the...

Arlos has an opportunity to save $290 per month at an APR of 8.65% in a 401K plan through work. He plans to retire in 25 years. The income taxes are at 26% for him. (1) What are Carlos's tax savings...

B2. Consider the differential equation: dy = (4 - y)(y+ 2) dx a) Provide the general solution to this differential equation. b) Use Euler's method to approximate the solution for t e [0,1] with y(-1)...

Pete works for a real estate company. The company recently acquired a plot of land for $50,000. Pete asked his boss if he could purchase it. The boss said "Pete you are a great employee. You have...

Referring to the lecture slide "Segmentation Variable: Consumer Market," please segment the consumer market for Tesla Model X into three out of five segments. Please name each segment first. Then...

7. As your starting point, take a discussion you have had with a person at your workplace. Answer the following questions: Answer the following questions: What did you want to achieve? How did you...

5. What does it mean when someone views it as important for their human dignity to maximize certain human values?

6. Based on the following distributional norms, discuss what you think should be the norms basis of your workplace / school. Prioritize the distribution norms as you think they should be used: a) It...