If the unemployment rate falls because the number of people not working but searching for work falls, economists would attribute this to the
A. encouraged worker effect.
B. discouraged worker effect.
C. fallacy of composition.
D. none of the options are correct.
Answer: B
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One thousand adults live in Milltown. Every day, they all leave work at 4:30 p.m., arrive home at exactly 5:00 p.m., and go to bed at 9:00 p.m. Three fundraisers, Alpha, Beta, and Charlie, have targeted Milltown's population. To get a donation, they must call Milltown's residents after they get home from work but before they go to bed. Because the charities raising the funds are identical, the first to call a willing donor will get the donation. Beta's manager has decided that the best time to call is 7:00 p.m. because it is exactly halfway between 5:00 p.m. and bedtime. Which of the following is true?
A. Alpha and Charlie will also make calls at 7:00 p.m. B. Beta is certain to generate the most donations. C. Alpha and Charlie will divide up the rest of the market, with one choosing to call at 6:00 p.m. and the other at 8:00 p.m. D. Beta's manager did not choose wisely.
A Real Option Value is:
a. An option that been deflated by the cost of living index makes it a "real" option. b. An opportunity cost of capital. c. An opportunity to implement cost savings or revenue expansion in a flexible business plan. d. An objective function and a decision rule that comes from it. e. Both a and b.
The vicious cycle of poverty refers to the fact that LDCs are poor because other countries do not want to buy their goods and services
Indicate whether the statement is true or false
The advantage to a corporation of issuing bonds instead of stock is that
A. Bond prices do not fluctuate. B. The possibility of default is lower when bonds are issued. C. The owners do not have to make interest payments on the loan. D. The owners keep control of the company.