The unemployment rate is 10 per cent. The rate of job separation is 5 per cent. How high does the rate of job finding have to be to keep the unemployment rate constant?
A. 10 per cent
B. 45 per cent
C. 50 per cent
D. 90 per cent
Ans: B. 45 per cent
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Buying financial assets from banks and other financial institutions in order to stimulate the economy is referred to as:
A. money easing. B. precommitment policy. C. quantitative easing. D. operation twist.
Hillary and Bill are playing backgammon. Hillary offers to place a wager on the game's outcome at fair odds. Bill is risk-averse and believes that he has a 60% chance of winning the game. When will Bill accept the wager?
a. Always. b. When the wager is sufficiently small. c. When the wager is sufficiently large. d. Never.
During a year of operation, a firm collects $450,000 in revenue and spends $100,000 on labor expense, raw materials, rent, and utilities. The firm's owner has provided $750,000 of her own money form her personal portfolio instead of investing the money and earning a 10% annual rate of return. The firm also operates out of a building they own worth $1,000,000 which the owner inherited 25 years ago.
1.The explicit costs of the firm are $______________. 2. If the owner could earn 15% annually on the money she has invested in the firm, the economic profit of the firm would be ______________ (when revenue is $450,000). 3. The implicit costs are $______________. 4. The firm's accounting profit is $______________. 5. The firm earns an economic profit of $______________.
If the amount of carbonated sodas consumed continues to decline as consumers continue to choose to buy healthier products, this will likely
A) increase the demand for premium water, because premium water and carbonated sodas are considered complements. B) increase the demand for premium water, because premium water and carbonated sodas are considered substitutes. C) decrease the demand for premium water, because premium water is considered an inferior good and carbonated sodas are considered normal goods. D) decrease the demand for premium water, because premium water is considered a normal good and carbonated sodas are considered inferior goods.