What is the social interest theory of regulation? How does it differ from the capture theory of regulation?
What will be an ideal response?
The social interest theory of regulation is that regulators seek an efficient use of resources. The capture theory asserts that producers "capture" the regulators so that the regulation is designed to help the producers maximize their economic profit.
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The interest rate is 5 percent. How does $500 to be received a year from today compare in value to $500 right now?
What will be an ideal response?
In a country with a working-age population of 22 million, 16 million are employed, 2 million are unemployed, and 1 million of the employed are working part-time, half of whom wish to work full-time. If 500,000 of those unemployed are cyclically unemployed, what is the natural unemployment rate?
A) 8.3 percent B) 5.6 percent C) 11.1 percent D) 9.4 percent E) none of the above
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point D to Point B, the opportunity cost of hybrid cars, measured in terms of motorcycles,
A. initially increases, then decreases. B. increases. C. remains constant. D. decreases.
Refer to the above table. What is the marginal revenue product of the fifth worker?
A. $160
B. $400
C. -$800
D. $2