Suppose local educators argue that teachers' salaries are too low. At the same time it is said that the school district received 750 applications for 5 new openings. Are salaries too low? Explain
What will be an ideal response?
It is difficult to claim salaries are too low when there are so many teachers who desire to work in the district. The number of applicants suggests that salaries are above the equilibrium wage rather than below the equilibrium wage.
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A ____ total cost function implies that marginal costs ____ as output is increased
a. linear; increase linearly b. quadratic; increase linearly c. cubic; increase linearly d. a and b e. none of the above
Inflation target refers to the commitment of central bankers to keep inflation below a certain rate for the next year or two
a. True b. False Indicate whether the statement is true or false
Asymmetric information is a situation in which ________
a. both buyers and sellers are equally uninformed, and both must invest in search in order to make an informed decision b. both buyers and sellers are fully informed c. one side of the market has more reliable information than the other side does d. one side of the market has identical reliable information as the other side
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point A necessarily represents
A. only hybrid cars being produced. B. an unattainable production point. C. what society wants. D. the economy's optimal production point.