Economic theory would anticipate that labor market distortions would reduce employment. Why isn't there greater evidence of this in developing countries?
What will be an ideal response?
The answer would focus on the imperfection of labor markets even without regulations, so that the impact of those regulations (e.g. the minimum wage) might not reduce employment. Also the ability to evade regulations could be mentioned.
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The working-age population of people over the age of 16 can be divided into two groups, people
A) in the labor force and people looking for work. B) with a job and people actively seeking a job. C) looking for work and those in the U.S. Armed Forces. D) in the labor force and people with a job. E) in the labor force and people who are not in the labor force.
Explain how to derive the demand for an input
Last year a country's real GDP grew by 4%, it's inflation rate was 2.5%, and it's government budget deficit was about $250 billion. It's debt to GDP ratio was unchanged. About what was it's debt at the start of last year?
a. 16.7 trillion b. 10.0 trillion c. 6.25 trillion d. 3.85 trillion
Refer to the figure below. At the market equilibrium quantity, the social marginal cost of the last ton of paper produced is ________ the marginal benefit of the last ton of paper produced.
A. equal to B. less than C. greater than D. less than or equal to