Use the following statements to answer this question: I. The effective yield is generally easier to compute for a perpetuity than for a 10-year bond. II
Two perpetuities that have the same annual payment must have the same price, even if the issuers of the bonds are different companies. A) I and II are true.
B) I is true and II is false.
C) II is true and I is false.
D) I and II is false.
B
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If the equilibrium wage for fast-food restaurants is $8 and the government enforces a minimum wage of $15
A. workers will get paid less. B. workers will be able to find more jobs. C. overall, society will be better off. D. fast-food restaurants will hire fewer workers.
If average labor productivity decreases while population and the number of employed workers remain constant, then total output:
A. increases. B. decreases. C. may increase or decrease. D. remains constant.
A game involving two players with two possible strategies is a prisoner's dilemma if each player has a dominant strategy and:
A. each player's payoff is higher when both play their dominant strategy than when both play their dominated strategy. B. there is a Nash equilibrium that yields the highest payoff for both players. C. each player's payoff is higher when both play their dominated strategy than when both play their dominant strategy. D. neither player plays their dominant strategy.
Explain how products produced by high-wage workers in the United States can compete with the products manufactured in countries whose workers earn much lower wages.
What will be an ideal response?