Suppose that Alpha and Omega have identically sized working-age populations but that annual hours of work are much greater in Alpha than in Omega. This could happen because
What will be an ideal response?
Omega's labor force is underemployed or Omega workers place a higher value on leisure than those in Alpha. correct
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Other things remaining the same, as the real interest rate increases,
A) firms will borrow more funds. B) firms' demand for funds will not change. C) the demand for loanable funds curve shifts leftward. D) firms will purchase new capital with its own funds instead of taking a loan. E) firms will borrow less funds.
Consider a firm that uses labor and capital to produce output x using a homothetic production technology that has increasing returns to scale when output lies between 0 and xA, constant returns to scale when output lies between xA, and xB, and decreasing returns to scale when output exceeds xB (where 0
What will be an ideal response?
Financial markets are
A) institutions that make loans to borrowers and obtain funds from savers. B) organized exchanges where securities and financial instruments are bought and sold. C) organized exchanges where currencies are traded. D) institutions that regulate financial instruments.
If a roofer offers a one-year warranty on their work, this is an example of ________.
A) a signal B) a trademark C) profit sharing D) certification