Which of the following occurrences likely accounts for the situation shown?
a. a change in human capital
b. a decrease in government regulations
c. a permanent change in the supply of inputs
d. a negative supply shock
d. a negative supply shock
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What is human capital and why is it crucial to expand human capital as part of the development process?
What will be an ideal response?
Your classmates from the University of Chicago are planning to go to Miami for spring break, and you are undecided about whether you should go with them. The round-trip airfare is $600, but you have a frequent-flyer coupon worth $500 that you could use to pay part of the airfare. All other costs for the vacation are exactly $900. The most you would be willing to pay for the trip is $1,400. Your only alternative use for your frequent-flyer coupon is for your trip to Atlanta two weeks after the break to attend your sister's graduation, which your parents are forcing you to attend. The Chicago-Atlanta round-trip airfare is $450. If the Chicago-Atlanta round-trip air fare were $350, should you use the coupon to go to Miami?
A. Yes, your economic surplus would be $50. B. No, your economic surplus would be -$100. C. Yes, your economic surplus would be $400. D. No, your economic surplus would be -$50.
The word futures, as used in commodity markets, refers to
What will be an ideal response?
When a group of workers forms a union, they introduce an element of
A. monopoly into the product market. B. pure competition into the labor market. C. monopoly into the labor market. D. monopsony into the product market.