Compared to a firm that does not statistically discriminate but has equally poor information about the true qualifications of potential employees, the firm that does statistically discriminate is likely to be less profitable rather than more
profitable. Indicate whether the statement is true or false
FALSE
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In the Solow model, if f(k) = 8k0.5, s = 0.2, n = 0.3, and d = 0.1, what is the value of k at equilibrium?
A) 1 B) 4 C) 9 D) 16
If the income effect counteracts the substitution effect, we know that the good in question is a(n)
a. complementary good. b. inferior good. c. luxury good. d. normal good.
A village has five residents, each of whom has an accumulated savings of $50. Each villager can use the money to buy a government bond that pays 10 percent interest per year or to buy a year-old goat, send it onto the commons to graze, and sell it after one year. The price of the goat that the villager will get at the end of the year depends on the amount of weight it gains while grazing on the commons, which in turn depends on the number of goats sent onto the commons, as shown in the table below. Assume that if a villager is indifferent between buying a bond and buying a goat, the villager will buy a goat.Number of goatson the commonsPrice per 2-yearold goat ($)Income pergoat ($/year)180302752537020465155555 When the each villager decides how to invest based on his or her narrow
self-interest, total village income will be ________ when the village collectively decides how to invest. A. either higher than or lower than depending on the price of the goats B. lower than C. higher than D. the same as
The productivity curve of the country Britania is given to be P. Currently the combination of physical capital per worker and real GDP per worker of Britania is at point A on the productivity curve. There are two other countries in the region, Zstan and Kryptan. These countries are similar to Britania in many aspects including technology, the level of education of the workforce and the supply of natural resources. However, Zstan has a higher savings rate than Britania while Kryptan has a lower savings rate.
What will be an ideal response?