Economists have noted that businesses of a certain type tend to congregate geographically, attracting workers with skills in those fields. This, in turn, lures more firms seeking employees with those skills
Some examples include commercial banking, software development, and the automobile industry. What mechanism is at work here? Briefly explain how the mechanism works to the advantage of employers and employees.
The mechanism at work is a network externality. Employers will have access to a larger pool of skilled employees. At the same time, the efficiency of the job search for employees will be enhanced. In addition, industries are likely to draw ancillary services which could yield further efficiency gains for producers.
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There are five schools of economic thought that approach the analysis of employment and inflation quite differently. They are
a. classical, Keynesian, neo-Keynesian, rational expectations, and neo-classicists b. classical, Keynesian, neo-Keynesian, rational expectations, and supply-side c. classical, Keynesian, classical-Keynesians, rational expectations, and supply-side d. classical, Keynesian, neo-Keynesian, adaptive expectations, and supply-side e. neo-classical, Keynesian, neo-Keynesian, rational expectations, and supply-side
The purchase of a virtual item from an online company with a virtual currency causes the nation's:
a. Monetary base to remain the same. b. M2 money supply to fall. c. M2 money multiplier to fall. d. M2 money supply to rise.
A constant-cost industry is one in which
A. output increases lead to productivity gains. B. there is no change in long-run per-unit costs, even as output varies. C. each firm has a horizontal long-run average cost curve. D. the marginal product of labor is constant.
Consider the following game. You pick a card from a standard 52-card deck and each time you select an ace, you get $520. For all other cards you must pay $26. This game is not a fair bet.
Answer the following statement true (T) or false (F)