Related to the Economics in Practice on p. 105: Researchers found that after a few years of a tax relief policy for foreigners, the fraction of foreigners in the top 0.5 percent of income earners in Denmark almost doubled. The researchers concluded that for this group of workers, labor supply seems to be
A. elastic.
B. perfectly inelastic
C. inelastic.
D. unit elastic.
Answer: A
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Average total cost is
A) total explicit costs divided by the quantity of output produced. B) total cost divided by the quantity of output produced. C) the change in fixed plus variable cost divided by the quantity of output produced. D) variable cost divided by the quantity of output produced.
Is a coordination failure a type of market failure? Explain
What will be an ideal response?
If the deficit is 0.08 times GDP, the existing debt—GDP ratio is 0.8, and the growth rate of nominal GDP is 0.05, then the change in the debt—GDP ratio is
A) +0.08 B) +0.04. C) 0. D) -0.08.
Which of the following is NOT a possible cause of structural unemployment?
A) individuals take the time to search for the best job opportunities B) a mismatch of worker training and skills with requirements of employers C) government-imposed minimum wage laws D) union activity that sets wages above the equilibrium level