ECO00003H Applied Economics 2021-2
Hello, dear friend, you can consult us at any time if you have any questions, add WeChat: daixieit
ECO00003H
BSc Degree Examinations 2021-2
Applied Economics
SECTION A
1. What does evidence suggest is the causal effect of a year of schooling on later life wages? How does this evidence influence the debate on whether to subsidise higher education?
2. Is there a causal effect of parents’ socio-economic status on child’s socio-economic status? Given this, should the government pursue policies to help children living in a low income household , for example through income transfers?
3. You are an Economist advising the government on their immigration policy. The government is worried about a high level of nurse vacancies within the NHS and is considering attracting foreign workers to fill the posts. Explain using economic evidence the likely consequence for wages of workers already in the UK.
SECTION B
4. Under what scenarios will the increases in the UK National Living Wage (a higher minimum wage for those aged 25 and above) made in April 2022 be expected to (i) reduce employment, or (ii) increase employment for the relevant group of workers? What is the empirical evidence on the impact of minimum wages on the level of employment which you would cite to support the argument that (i) or (ii) is more likely? Explain your answers in detail.
5. One way to examine whether adverse selection exists in a particular insurance market is to compare the expected cost of those with insurance (treated group) to that of those without (control group). Explain carefully how this “positive correlation test” may be implemented in the healthcare sector. Why are moral hazard and adverse selection difficult to distinguish empirically?
6. There is disagreement in the literature about the relationship between individuals’ happiness and income. Explain, giving examples from relevant papers, how we should judge how strong this relationship is.
2023-05-07