Education and training are examples of investment in human capital.
Answer the following statement true (T) or false (F)
True
Human capital leads to greater productivity as workers are able to use more productive physical capital.
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What is the primary reason exchange rates were overvalued under ISI?
What will be an ideal response?
A monopsonist in the labor market has
A) a perfectly elastic labor supply. B) a decreasing average variable cost. C) an upward sloping labor supply curve. D) a downward sloping marginal revenue product curve.
A restaurant currently has two cooks and ten waiters. Cooks earn $10 an hour and waiters earn $5 an hour. The last cook added 40 meals served to total output, while the last waiter added 25 meals served to total output. In order to maximize the number of meals served with a fixed budget, the manager should
A. should use more cooks and fewer waiters because productivity per dollar is higher for cooks than for waiters. B. should use more waiters and fewer cooks because waiters are paid less than cooks. C. continue to use two cooks and ten waiters because output is being maximized. D. should use more cooks and fewer waiters because cooks are more productive than waiters. E. should use more waiters and fewer cooks because productivity per dollar is higher for waiters than for cooks.
The price of a Big Mac in the U.S. is $4.93; the price in France is 3.72 euros. The current exchange rate is 1.07€/$. What is the real exchange rate?
What will be an ideal response?