Which of the following is a result of unemployment that is very low?
a. the few people who are unemployed stop looking for jobs
b. wages drop below the level of minimum wage
c. companies have difficulties recruiting workers
d. companies stop looking for people to fill unfilled jobs
Answer: c. companies have difficulties recruiting workers
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Dan is the owner of a price-taking company that manufactures sporting goods. One particular facility Dan owns produces baseball bats and baseball gloves. His cost function for baseball bats is CB(QB, QG) = 100QB + QB2 + QBQG and the marginal cost is MCB = 100 + 2QB + QG, where QB is the output level for bats and QG is the output level for gloves. Dan's cost function for baseball gloves is CG(QB, QG) = 50QG + QG2 + QGQB, and the marginal cost is MCG = 50 + 2QG + QB. The price of a baseball bat is $240 and the price of a baseball glove is $150. If Dan were to shut down his production of bats and only produce gloves, what would be his profit-maximizing sales quantity of gloves?
A. 20 B. 25 C. 30 D. 50
Assume that the central bank lowers the discount to increase the nation's monetary base. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and current international transactions balance in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete
equilibrium. a. The real risk-free interest rate remains the same and current international transactions balance becomes more negative (or less positive). b. The real risk-free interest rate falls and current international transactions balance becomes more positive (or less positive). c. The real risk-free interest rate and current international transactions balance remain the same. d. The real risk-free interest rate rises and current international transactions balance remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
If losses are unavoidable in an uncertain world, then
What will be an ideal response?
Which of the following is most likely to occur if Medicare is converted from an in-kind transfer program to a cash transfer program?
A. A more equitable distribution of health care. B. Increased poverty. C. A reduction in health care for the elderly. D. Increased target efficiency.