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The marginal productivity theory states that if a firm operates in a perfectly competitive factor market, it pays each factor of production its marginal revenue product. However, this theory may fail to hold if factor markets are not competitive.
One circumstance under which factor markets may fail to be competitive is if there is imperfect information. Which of the following are ways in which government can help to solve information problems in factor markets? Check all that apply.
Passing laws requiring firms to obtain information about every potential worker who applies for a job, regardless of their race, gender, etc.
Passing a law prohibiting firms from firing workers unless they do something illegal
Certifying workers and other inputs as being of high quality—for example, by testing gasoline pumps to ensure they distribute the amount of gas they say they do, or by administering standardized tests in high schools so that a high school diploma acts as a signal that a worker has mastered certain basic skills
1. you are the manager of a racquet club as well as you want to determine the best cost for local rentals. assume that
explain how much consumer spending takes place. Which of the following is something that they would include in consumer spending.
Suppose an economy produces three goods (rice, bananas, and strawberries). Draw its PPF assuming constant opportunity costs, then draw it with increasing opportunity costs.
Discuss what happens to equilibrium price and sales. Explain why or why not this makes sense in the real world.
Find the average daily balance for the following credit card account. Assume one month between billing dates using the proper number of days in the month. Then find the finance charge is interest is 1.5% per month on the average daily balance. Finall..
Explain how the quantity of executives demanded, the quantity supplied, and executive pay will change based on the above statement.
If there is an inflationary gap in the economy, what fiscal policy decisions would you make to bring the economy back to the full employment point? Explain why in each policy that you make.
Identify the two events that can cause a shift in the Production Possibilities curve.
You are given the following information about a monopsonist:
An effective Federal Reserve operating target is a target that is reliably linked to
Evalute the probability that the company A defaults during the next year assuming that the CDS is priced in a way that makes the expected profit from selling the CDS as zero, and assuming that default probabilities do not vary during the 5 years.
Explain how does the government decide to use one form of remedy rather than the other.
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