Suppose the market for guitars "clears" at a price of $500 per guitar. What does the above statement mean?
A) Nothing, if an economist made the statement.
B) Guitars are no longer a scarce good.
C) The plans of guitar buyers and sellers are coordinated.
D) There is no longer a demand for guitars.
C
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The concept of odious debt implies
(a) an excessive debt. (b) a debt that is not the responsibility of the nation's people. (c) a large debt burden. (d) the total external debt of a nation's people.
Consider a two-good production economy in which both goods are produced with fixed proportions production functions. Then, some efficient allocations will exhibit unemployment of some factor providing:
a. the firms use the inputs in different proportions. b. the firms exhibit diminishing returns to scale. c. the firms exhibit increasing returns to scale. d. production can never be efficient if there are unemployed inputs.
Workers should invest in additional human capital as long as the:
A. marginal benefit exceeds the marginal cost. B. opportunity cost exceeds the marginal benefit. C. opportunity cost is zero. D. marginal cost exceeds the marginal benefit.
In the United States the differential between union and non-union wages
A) does not exist. B) currently averages about 50-60 percent. C) has been narrowing. D) tends to fall during a recession because union members typically have shorter-term contracts than do nonunion employees.