# Economics

The following post has two assignments namely;

## 1.Economics

1. LABOR DEMAND, PART 1 Suppose output, Q, is produced by labor, L, and capital, K, according to the following
function: Q = K 1⁄2 L1⁄2.. Suppose the firm sells each unit of output in a competitive market for a price P = \$100. Suppose the firm hires each unit of labor in a competitive market for a wage W =
\$25. Suppose the firm has to make do for now with a stock of capital K = 49; moreover, suppose each unit of capital costs R = \$75.
A. How much labor will be demanded by the firm? Demonstrate and explain.
B. At the “optimal” quantity of labor, what is the capital-to-labor ratio K/L? Demonstrate and explain.
C. Utilizing the “optimal” quantity of labor, how much profit will the firm earn?
2. LABOR DEMAND, PART 2 Consider the circumstances of Problem #1, only now the firm is free to choose both labor
L and capital K. A. What capital-to-labor K/L ratio will the firm choose? Demonstrate and explain.
Compared to Problem #1 above, does the firm become more capital-intensive, more labor- intensive, or does the K/L ratio remain unchanged? If any change occurs, explain why it occurs.
B. Compared to Part A just above, suppose the cost of capital drops from R= \$75 to R = \$65. How does this development affect the demand for labor? Demonstrate and explain.
3. WORKING IN THE REAL WORLD On January 17, 2018 the Bureau of Labor Statistics (BLS) released a report on the usual
weekly earnings of wage and salaried workers for the fourth quarter of calendar year 2017. Find this report and answer the following questions.
A. Compared to men with high school diplomas, in late 2017 how did the earnings of college educated men (bachelor’s degree or higher) compare? Report the relevant statistical evidence and
interpret. Did it pay for a male to be a college graduate? Demonstrate and explain. Compared to bachelor’s degree college graduates, does it pay for a male to earn an advanced degree? Demonstrate
and explain.
B. Compared to women with high school diplomas, in late 2017 how did the earnings of college educated women (bachelor’s degree or higher) compare? Report the relevant statistical evidence and
interpret. Did it pay for a female to be a college graduate? Demonstrate and explain. Compared to bachelor’s degree college graduates, does it pay for a female to earn an advanced degree?
Demonstrate and explain.
C. In late 2017 did the “payoffs” to a college education seem to be similar for males and females in the U.S.? Demonstrate and explain. How would your answer change – if at all – if you focused
only on white males and white females? Demonstrate and explain.

## 2.Management

1.If you take as given that the government is increasingly using private actors to extend its reach, the \$64,000 question becomes, “why do we manage and protect democratic values in this new
system?”

2. In a networked government system, third-party providers are entrusted with substantial public assets, and it is the responsibility of the executive branch to assure that private actors are held
accountable for discharging state action appropriately. For example, when the mayor of Indianapolis, privatized half of the trash routes in the city. They immediately notified citizens that the
mayor retained responsibility for trash pickup and directed them to contact the city call center to complain if there were problems — regardless of whether a city employee was assigned to that
route. So, what procedures should the executive branch consider in order to protect democratic values in a system of networked government?

3. Governing by network brings with it new opportunities and new risks: Public officials can produce considerably more public value — and in a more personalized fashion — but risk losing control
over the delivery system. In this new world, government officials will need new talents, tools and approaches to insure democratic accountability and protect important values, but it can be done.
Talk about the new talents, tools and approaches needed to insure democratic accountability and protect important values.

4.In your own words, explain why governments are increasingly turning to private sector providers.

5. In your own words and using examples from the book, ” Governing by Network”, How to make public-private collaborations work.
Support and explain your response. Responses should be no less than three paragraphs.

6. In the book, “Governing by Network” there are four major forces that drives this trend mentioned. Name the four trends

7. Designing Public-Private Networks
Governing networks that work do not happen by chance. They must be carefully designed with high-quality partners in a flexible, responsive system. To design such a network, address these
considerations: Name the five considerations.“Trust is the bedrock of collaboration. Without it, people will not collaborate or share knowledge.”

8. In the book, “Governing by Network”, the author speaks to three service delivery models. List and explain each of the three models.