Under competition, the price of a resource reveals
a. information about the past, but not future, uses of a resource.
b. the most valuable way to use the resource.
c. how much the resource is worth in the most valuable of its alternative uses.
d. the value of the labor needed to fully exploit the resource.
c. how much the resource is worth in the most valuable of its alternative uses.
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Suppose that choice sets are convex. State assumptions about tastes that are necessary and sufficient to guarantee that the solution to the consumer optimization problem is a unique interior solution. (Explain)
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A minimum wage is a government-imposed price ________ that is designed to be ________ the equilibrium wage rate
A) ceiling; above B) ceiling; below C) floor; above D) floor; below
Why would a company be more enthusiastic in providing more training to its workers during an economic downturn than during an economic boom (assuming that they do not layoff their workers and can keep them when the economy recovers)?
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When potential GDP increases, is it necessarily the case that real GDP increases as well? Explain
What will be an ideal response?