Discuss and explain what is meant by the "state of technology."
What will be an ideal response?
The state of technology can be defined either narrowly or more broadly. In a narrow sense, it allows firms to convert resources into goods and services. A broader interpretation would allow it to include/take into account the organization of firms, the organization of markets, and so on.
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The above figure represents the market for teenage workers at fast-food restaurants in Kansas City
a) What is the equilibrium wage rate and employment? b) Describe the market at a wage rate of $6 per hour. c) Describe the market at a wage rate of $12 an hour. d) How would an increase in the number of young, married college graduates, who tend to eat at fast-food restaurants, affect the figure, the equilibrium wage rate, and employment?
In the figure above, the decrease in the interest rate from i1 to i2 can be explained by
A) a decrease in money growth. B) a decline in the expected price level. C) an increase in income. D) an increase in the expected price level.
Describe the strategy of inflation targeting. Why have many countries begun to use this strategy instead of targeting money growth? What are the advantages and disadvantages of inflation targeting?
What will be an ideal response?
The above figure shows the cost curves for a typical firm in a competitive market. If price = 8.5, then
A) the firm will produce 10 units. B) the firm will produce 55 units. C) the firm will earn positive profits. D) None of above.