When the quantity of labor demanded exceeds the quantity of labor supplied, the real wage rate
A) rises to eliminate the labor-market shortage.
B) falls to eliminate the labor-market surplus.
C) rises to eliminate the labor-market surplus.
D) falls to eliminate the labor-market shortage.
A
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Suppose there are three power-generating plants, each of which has access to 5 different production processes. The table below summarizes the cost of each production process and the corresponding number of tons of smoke emitted each.Process(smoke/day) A(4 tons/day) B(3 tons/day) C(2 tons/day) D(1 ton/day) E(0 tons/day) Cost to Firm X ($/day) $500$514$530$555$585 Cost to Firm Y ($/day) $400$420$445$480 $520Cost to Firm z ($/day) $300$325$360$400 $550Suppose the government decides to impose a tax on each ton of smoke emitted. What would be the lowest tax, in whole dollars, that would reduce emissions to 6 tons per day?
A. $36 per ton B. $21 per ton C. $26 per ton D. $41 per ton
Two Stage Least Squares is calculated as follows; in the first stage:
A) Y is regressed on the exogenous variables only. The predicted value of Y is then regressed on the instrumental variables. B) the unknown coefficients in the reduced form equation are estimated by OLS, and the predicted values are calculated. In the second stage, Y is regressed on these predicted values and the other exogenous variables. C) the exogenous variables are regressed on the instruments. The predicted value of the exogenous variables is then used in the second stage, together with the instruments, to predict the dependent variable. D) the unknown coefficients in the reduced form equation are estimated by weighted least squares, and the predicted values are calculated. In the second stage, Y is regressed on these predicted values and the other exogenous variables.
Stock is
A) bought in a secondary market and sold in a primary market. B) bought in a secondary market and sold back to the firm. C) initially purchased in a primary market and sold in a secondary market. D) none of these choices.
Suppose that some country had an adult population of about 46 million, a labor-force participation rate of 75 percent, and an unemployment rate of 8 percent. How many people were unemployed?
a. 2.54 million b. 2.76 million c. 3.68 million d. 8 million