Discuss what is meant by labor market rigidities and explain how they might cause the relatively high unemployment in Europe
What will be an ideal response?
Examples of labor market rigidities are: relatively high minimum wage, relatively high unemployment benefits, and relatively high level of worker protection. All three of these are hypothesized to cause a reduction in employment and, therefore, an increase in the unemployment rate.
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Draw a supply and demand graph on the below diagram that illustrates the market for pollution rights. Label the axes and curves. Then show what happens to price and quantity when the demand for pollution rights increases in the market
Long Beach Island, off the coast of New Jersey, is considering enhancing its system of satellite towers to help communication during emergencies such as hurricanes
A study showed that in Superstorm Sandy the existing number of satellite towers resulted in the marginal social cost of a satellite tower being less than the marginal social benefit. To achieve efficiency, this study indicates that the A) system should be left as is because the quantity of satellite towers is efficient. B) system should be reduced in size because the quantity of satellite towers is more than the efficient quantity. C) system should be expanded because the quantity of satellite towers is less than the efficient quantity. D) None of the above because the study erred in comparing the marginal social cost to the marginal social benefit since it should have compared the marginal private cost to the marginal private benefit.
A major contribution of the Solow model is its ________
A) insight into what distinguishes rich economies from poor economies B) explanation of why productivity grows over time C) demonstration that the key to sustained growth is a high level of saving D) encouragement of policies to limit population growth
A major component of the “cradle-to-grave” management system is
a. identification of hazardous waste b. a permit system for treatment, storage, and disposal facilities (TSDFs) c. a national manifest system for tracking through the waste stream d. all of the above e. (a) and (c) only