copyright © 2009 pearson education, inc. 6- 1 review for final exam will include questions from:...

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Copyright © 2009 Pearson Education, Inc. 6- 1 Review For Final Exam Will Include Questions From: In-Class Lectures Chapter 6 (exclude pps. 185-187 and 202-205) Chapter 8 (exclude appendix) Chapter 9 (exclude appendix) Chapter 10 (exclude pps. 347-354) Chapter 12 (exclude pps. 422-427 and appendix) Articles 7, 8, and 9

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Copyright © 2009 Pearson Education, Inc. 6- 1

Review For Final Exam

Will Include Questions From:

In-Class Lectures Chapter 6 (exclude pps. 185-187 and 202-205)Chapter 8 (exclude appendix)Chapter 9 (exclude appendix)Chapter 10 (exclude pps. 347-354)Chapter 12 (exclude pps. 422-427 and appendix)Articles 7, 8, and 9

Copyright © 2009 Pearson Education, Inc. 6- 2

Chapter 6 - Supply of Labor and Decision to Work

Theory of the Decision to Work Income and Substitution Effects of a Wage ChangeThe Graphics of Labor-Leisure Choice Graphical Analysis of Income Replacement ProgramsGraphical Analysis of Welfare ProgramsWelfare Reform and Workfare

Copyright © 2009 Pearson Education, Inc. 6- 3

Figure 6.1: An Individual Labor Supply Curve Can Bend Backward

Copyright © 2009 Pearson Education, Inc. 6- 4

Figure 6.7: Indifference Curves and Budget Constraint (with an increase in nonlabor income)

Copyright © 2009 Pearson Education, Inc. 6- 5

Figure 6.13: Budget Constraint with a Spike

Copyright © 2009 Pearson Education, Inc. 6- 6

Figure 6.14: Income and Substitution Effects for the Basic Welfare System

Copyright © 2009 Pearson Education, Inc. 6- 7

Chapter 8 - Compensating Wage Differentials

The Role of Compensating Wage Differentials in Matching Worker and EmployerHedonic Wage Theory and Risk of Injury -Worker Indifference Curves -Employer Isoprofit Curves -The Offer Curve Hedonic Wage Theory and Employee Benefits

Copyright © 2009 Pearson Education, Inc. 6- 8

Figure 8.1: A Family of Indifference Curves between Wages and Risk of Injury

Copyright © 2009 Pearson Education, Inc. 6- 9

Figure 8.3: A Family of Isoprofit Curves for an Employer

Copyright © 2009 Pearson Education, Inc. 6- 10

Figure 8.6: An Offer Curve

Copyright © 2009 Pearson Education, Inc. 6- 11

Figure 8.12: Market Determination of the Mix of Wages and Benefits

Copyright © 2009 Pearson Education, Inc. 6- 12

Chapter 9 - Human Capital Investments

Net Present Value and The Human Capital Investment DecisionThe Effect of Education and OJT on Earnings - Males and Females Women and Human Capital Acquisition Is Education a Good Investment? The Signaling Model

Copyright © 2009 Pearson Education, Inc. 6- 13

Figure 9.2: Alternative Earnings Streams

Copyright © 2009 Pearson Education, Inc. 6- 14

Figure 9.4:

Money Earnings (Mean) for Full-Time,

Year-Round Female Workers, 2005

Copyright © 2009 Pearson Education, Inc. 6- 15

Figure 9.6: The Increased Concavity of Women’s Age/Earnings Profiles

Copyright © 2009 Pearson Education, Inc. 6- 16

Figure 9.8: The Lifetime Benefits and Costs of Educational Signaling

Copyright © 2009 Pearson Education, Inc. 6- 17

Chapter 10 - Worker Mobility

Net Present Value and Worker MobilityCharacteristics of MoversReturns to ImmigrationU.S. Immigration HistoryCharacteristics of Illegal Immigrants to the U.S. Benefits and Costs of immigration