If unskilled labor and capital are substitutes,
A. the price of unskilled labor decreases when the price of capital increases.
B. the cross-elasticity between unskilled labor and capital is positive.
C. the demand for unskilled labor increases when the price of capital decreases.
D. the demand curve for capital is upward sloping.
E. the price of capital is increasing.
Answer: B
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Bo's actions would
A) have no impact on the September unemployment rate or the October unemployment rate. B) raise the September unemployment rate and lower the October unemployment rate. C) raise the September unemployment rate and not change the October unemployment rate. D) classify him as out of the labor force in September. E) raise the September unemployment rate and the October unemployment rate.
Why is money you receive at some future date worth less to you than money you receive today?
What will be an ideal response?
Refer to Figure 10-1. Which of the following statements is true?
A) Quantities Q0 and Q1 are the utility-maximizing quantities of hoagies at two different prices of hoagies. B) Quantities Q0 and Q1 are derived independently of the utility-maximizing model. C) Quantity Q0 could be a utility-maximizing choice if the price is $5.75, but quantity Q1 may not be because we have no information on the marginal utility per dollar when price changes. D) Quantities Q0 and Q1 may not necessarily be the utility-maximizing quantities of hoagies at two different prices because we have no information on the consumer's budget or the price of other goods.
The benefit that government receives from a tax is measured by
a. the change in the equilibrium quantity of the good. b. the change in the equilibrium price of the good. c. tax revenue. d. total surplus.