Evaluate the economic validity of the following statement: "Unemployed resources would not exist if the economy were operating efficiently."
This statement is false. It fails to recognize that some unemployment represents time spent by workers acquiring better information about the labor market and more marketable skills. Although these actions will cause unemployment for a short time, the result will be workers more efficiently matched to their jobs. This will lead to higher productivity and output.
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Draw a two period budget line where the borrow/lending rate of interest, r, allows consumers to choose consumption in each of the two periods. C1 and C2 given their anticipated income on two periods, Y1 and Y2 . The slope is
a. r b. ?r c. 1 + r d. ?(1 + r)
Which of the following is NOT an example of a way in which microeconomic analysis can help in designing environmental policy?
A. Examining the trade-offs between ecological benefits of environmental legislation and its impacts on consumers' standard of living B. Lobbying consumers and firms to reduce consumption of energy C. Designing laws to provide incentives for firms to implement clean technologies in new vehicles D. Determining the optimal level of vehicle fuel efficiency standards
Table 1.2 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S. capacity, ceteris paribus. Complete the table by calculating the required opportunity costs for both the B-1 and Stealth bombers. Table 1.2Production Possibilities for BombersCombinationNumber of B-1 BombersOpportunity cost(Foregone Stealth)Number of Stealth BombersOpportunity cost (Foregone B-1)A20NA195 B35 180 C45 150 D50 100NAThe highest opportunity cost in Table 1.2 for B-1 bombers in terms of Stealth bombers is
A. 33 B-1 bombers B. 10 B-1 bombers C. 10 Stealth bomber per B-1 D. 10 Stealth bombers per B-1
The Position Analysis Questionnaire analyzes jobs in terms of _____.
A. job data B. duties and responsibilities C. job elements and tasks D. employee data