Suppose that a developing country devotes extensive resources towards improving the education and skill level of the labor force
How might this help the country avoid a coordination failure? Is this strategy likely to be successful? Why or why not?
See page 166 for an answer to the first part. The answer to the second part is more open ended and will depend on lecture coverage.
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In order to help the economy recover from a recession using fiscal policy, the government can ________ so that aggregate demand increases
A) cut taxes B) raise taxes C) cut government expenditure on goods and services D) raise interest rates E) decrease the quantity of money
The above figure shows the market for labor. The employer is a monopsony. At the equilibrium level of employment, which of the following is CORRECT?
A) MCL = VMP B) VMP > W C) W < MCL D) All of the above are correct.
Amanda lives in France. She received $5,000 as a wedding gift from a relative living in the U.S. This is an example of a(n) ________
A) factor payment to France B) transfer payment to France C) import by the U.S. D) export by the U.S.
Why does perfect competition shun advertising? Does advertising benefit a monopoly?
What will be an ideal response?