Is the United States' labor supply more inelastic or more elastic? Briefly summarize the competing theories
Some labor economists believe that most workers work full time regardless of their wages. Hence, these economists believe that labor supply is more inelastic.
Other labor economists believe that labor supply is more elastics because of the following reasons:
*Many workers can adjust the number of hours that they work. Some people have a choice about working overtime, for example.
*Some workers are the second earner in their families. They may choose to work part time in the work place in order to spend more time at home. They may respond to higher wages by entering the work force, thus working more hours.
*Some older workers can choose when to retire, and once retired, they may choose to work part time.
*Some people engage in economic activity that is a part of the underground economy. These people will adjust whether they work in legitimate jobs or as a part of the underground economy based on wages.
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Johnny has allocated $30 toward coffee and tea and feels that coffee and tea are perfect substitutes. Due to differences in caffeine levels, his MRS of tea for coffee equals two. If coffee and tea sell for the same price, Johnny will
A) spend all $30 on tea. B) spend all $30 on coffee. C) spend $20 on coffee and $10 on tea. D) be indifferent between any bundle of coffee and tea costing $30.
How is the public debt calculated?
a. By adding up consumption, investment, government purchases, and net exports and then cumulating the annual totals over the years of the nation b. By subtracting consumption and investment from government spending each year and then cumulating the annual totals over the years of the nation c. By subtracting current government spending from current government tax revenues d. By adding up the difference between annual government tax revenues and annual government spending and cumulating the differences over the years of the nation
Over the past year, productivity grew 1.8%, capital grew 2%, and labor grew 1%. If the elasticities of output with respect to capital and labor are 0.2 and 0.8, respectively, how much did output grow?
A. 1% B. 2% C. 3% D. 4%
If net exports are positive for China, it must be true that China is experiencing net outflows of capital
Indicate whether the statement is true or false