Technical and "junior" colleges offering full-time degree programs that may be completed in two years or less are a rapidly growing segment of the U.S. economy. What are some likely impacts on aggregate flows into and out of employment status?
What will be an ideal response?
For workers who lose (or leave) a job and opt for technical college, the status change is from "employed" to "not in the labor force," rather than to "unemployed." Workers who go to technical college before beginning to search for their first job are likely to transition from "not in the labor force" to "employed," with no interval of "unemployed." Thus, flows between "employed" and "not in the labor force" are enlarged, relative to flows from either status into "unemployed." As an alternative to unemployment, technical colleges increase the flow from "unemployed" to "not in the labor force," relative to the flow from "unemployed" to "employed."
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Why is a competitive market efficient?
What will be an ideal response?
As the president of your firm, you are considering the purchase of a new piece of machinery. The machine is expected to increase profits by $5,000 per year for five years. After that, the machine will have no value
If the machine costs $22,000 and the market rate of interest is 5 percent, should your firm purchase the machine? Explain.
The price of an exhaustible resource sold in a perfectly competitive market in which technology and consumer preferences do not change over time will tend to
a. stay constant over time. b. always equal the price of the closest substitute for that resource. c. fall over time. d. rise over time.
Which statement is false?
A. The poverty rate was lower in 2009 than it was in 2000. B. The poverty rate for children under 18 is higher than the poverty rate for people over 65. C. The poverty rate today is higher than it was in 2006. D. The poverty rate for Hispanics is three times that of whites.