Frictional unemployment may be economically beneficial if:
A. losses in economic output are small.
B. its psychological costs are borne only by the unemployed worker.
C. the social costs are limited to smaller tax revenues collected.
D. it leads to a better match between worker and job.
Answer: D
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A good deal of iron ore is mined in Michigan's Upper Peninsula. What is the relationship between the demand for iron ore and the cost of mining operations in Michigan?
A) Changes in the demand for iron ore are caused directly by changes in the cost of iron mining. B) Changes in the costs of iron mining are caused by changes in the demand for iron ore. C) There is no significant relationship because the demand for iron ore is determined by many different people, while the cost of mining the ore is determined by business executives. D) Nobody knows.
Why are bonds risky to a corporation?
What will be an ideal response?
Suppose you borrow $1,000 to purchase a car. Which of the following correctly represents the changes in your personal balance sheet after the bank lends the money, but before you spend it?
a. Assets: loan, +$1,000 . Liabilities and net worth: checking deposit, +$1,000 b. Assets: loan, -$1,000 . checking deposit, +$1,000 . Liabilities and net worth: no change c. Assets: loan, +$1,000 . checking deposit, -$1,000 . Liabilities and net worth: no change d. Assets: checking deposit, +$1,000 . Liabilities and net worth: loan, +$1,000 e. Assets: checking deposit, +$1,000 . Liabilities and net worth: loan, -$1,000
Craig quit a job earning $12,00 . per year to open his own lawn-care service. Yesterday, he was offered a job earning $20,00 . per year at Home Depot, but he turned it down to continue running his lawn-care service. Assuming that his total revenue (= P
× Q) has not changed, (a) explain the impact of this job offer on Craig's economic profit, and (b) explain the impact of this job offer on his normal profit.