Explain what is meant by shoe-leather costs
What will be an ideal response?
In the medium run, an increase in inflation will cause an increase in nominal interest rates. When the nominal interest rate rises, the opportunity cost of holding money increases causing individuals to reduce their money balances. Individuals, therefore, make more trips to the bank. The costs associated with this are called shoe-leather costs.
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Goods and services provided by state and local governments are:
A. included in GDP at cost. B. excluded from GDP because they are not sold in markets. C. excluded from GDP because they are publicly provided. D. included in GDP at market prices.
Glen's friend Andre is a big strong guy. Andre will not allow anyone to harm Glen. Glen enjoys teasing people. In fact, Glen's marginal benefit of teasing people is given by: MB(Q) = 75 - 10Q. Generally, people do not enjoy Glen teasing them
Thus, they retaliate to Glen's teasing. Without Andre around to protect Glen from the retaliation, Glen's marginal cost of teasing people is MC(Q) = 20Q due to the retaliation. However, with Andre around, Glen perceives his marginal costs of teasing to always be zero as no one will retaliate with Andre around. This is because Andre will step in to protect Glen from retaliation. Without Andre around, what is Glen's choice for teasing? How much does Glen increase teasing when Andre's around? Is Glen's behavior characteristic of a moral hazard or adverse selection?
The natural rate of unemployment when seasonally adjusted includes
A) frictional and structural unemployment but not cyclical. B) frictional and cyclical unemployment but not structural. C) frictional unemployment only. D) cyclical and structural unemployment but not frictional.
In case of ________ labor markets, a few key people critical to the overall success of an enterprise are richly rewarded
a. risk prone b. winner-take-all c. unorganized d. unionized