Suppose two fishing boats are both run by profit-maximizing captains. Bob's boat cost him $500,000 and Debra's boat cost her $400,000 . If they both have identical boats and their labor and fuel costs are the same, who will catch more fish?
a. Bob will catch 20 percent fewer fish
b. Debra will catch 20 percent fewer fish
c. they will catch the same
d. Bob will catch 25 percent more fish
e. Debra will catch 25 percent more fish
C
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What do you think would be the Cobb-Douglas single best prescription for poor countries to catch up with the rich?
A) to increase their stock of capital B) to increase their labor force C) to find more efficient ways to allocate and use capital and labor D) to ask help of the rich countries E) none of the above
Which of the following is correct?
a. Studies of the effects of the minimum wage typically find that a 10 percent increase in the minimum wage raises the average wage of teenagers by 10 percent. b. The drop in teenage employment caused by a 10 percent increase in the minimum wage is not significant. c. The minimum wage is more often binding for teenagers than for other members of the labor force. d. All firms consistently enforce minimum-wage laws.
When creating money, banks are acting as ______.
a. depositors b. borrowers c. suppliers d. intermediaries
The natural rate of unemployment includes
A. cyclical unemployment. B. part-time employment. C. hidden unemployment. D. structural unemployment.