The investment required to maintain steady state growth
A) is impossible to achieve since capital for new workers requires continuous increases in s, the per capita savings ratio.
B) must equip new workers with capital equal to that employed by existing workers.
C) must replace "worn out" capital.
D) B and C.
D
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Which of the following is NOT considered to be in the labor force?
A) a student who works part-time B) a person who is not working but who has tried to find a job in the past week C) a person who is waiting to start a new job in the next 30 days D) a person who is not working and who has not tried to find a job
In 2015, President Obama proposed increasing the minimum wage from $7.25/hr to $10.10/hr. According to theory, what would likely be the result of such an increase?
A. Some workers would leave the labor market. B. Unemployment would increase as firms lay off workers. C. All workers prior to the wage increase would now earn at least $10.10 per hour. D. Firms would hire more workers.
Refer to the above figure. Suppose there are L4 workers in the union. If the union wants to set a wage rate of W3, it must
A) determine which of its members will earn W3 and which will earn W1. B) accept that L4 - L2 members will not be able to find work in the industry. C) accept that L3 - L2 workers will have to get a lower wage equal to W2 and L4 - L3 workers will have to get a wage of W1. D) determine the most efficient way to get the firms to accept the wage and hire all L4 workers.
Who has a greater opportunity cost of leisure — a president of a major corporation or a babysitter?