The competitive labor market model suggests that persistence of significant employer discrimination
A. should not be considered at all.
B. requires workers to supply labor at a rate below their opportunity cost.
C. should be larger than what currently is.
D. requires the owners of the firm to supply capital at a rate of return substantially below its opportunity cost.
Answer: D
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Refer to the scenario above. What is the national income of the economy?
A) $7,000 B) $10,000 C) $2,000 D) $5,000
What role do households play in the market for inputs? What role do firms play?
What will be an ideal response?
If an economy is operating inefficiently, then
A. the economy can increase production of consumption goods without reducing capital goods. B. there is always a positive opportunity cost to increasing output. C. output can only be increased through capital investment. D. output cannot be increased.
Explain what a dual exchange rate system is
What will be an ideal response?