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True, False, or Uncertain and explain why
a) In a world of job-finding and search, unemployment benefits should effect the wage accepted, but not the length of time spent searching for a job.
b) The number of monthly separations between workers and firms is about 200,000, equal to a decent month’s job gains.
Assume that the demand for cigarettes is perfectly inelastic, whereas the elasticity of supply is one. The equilibrium price is $1 a packet and the equilibrium quantity is 1000 packets a week..
Suppose that in a year an American worker can produce 100 shirts or 20 computers and a Chinese worker can produce 100 shirts or 10 computers. Who has the comparative advantage in the production of shirts? What about for computers?
You observe a positive relationship between price that your store charges for CDs and total revenue from CDs. Is demand for your CDs elastic or inelastic.
Stone Age Surfboards is a small manufacturer of two types of popular low-tide surfboards, the Gray stone and the Lava models. The manufacturing process consists of two departments: fabrication and finishing. The fabrication department has 8 skilled w..
Karen runs a print shop that makes posters for large companies. It is a very competitive business. The market price is currently $1 per poster. What is her AFC per poster (not per thousand!) if she prints 1,000 posters? What if she prints 2,000 poste..
Illustrate what will be the price of this new drink in the long run, assuming the industry is a Cournot duopoly.
Explain the difference between absolute and comparative advantage. Explain the law of increasing (opportunity cost). What causes cause to increase? What factors or events could cause an inward shift of the production possibilities curve?
Explain how many will be hired Daily Demand for Workers in a Purely Competitive Labor also Product Markets.
Illustrate what price-quantity combination maximizes your firm's profits. Compute the maximum profits.
A firm has a monopoly on a new type of gaming console. The market demand is given by P=175.3-0.003*Q and thus marginal revenue is MR=175.3-0.006*Q. The monopolist's marginal cost is MC=5.2+0.001*Q. Calculate the profit-maximizing production quantity.
An investment bank is planning to interview 10 job candidates, randomly chosen from the applicant pool. Individuals differ in their abilities to put together deals and perform other functions that are part of an investment banker’s job.
Describe how the circular-flow diagram works. Name the parts of the diagram that correspond to the flow of goods and services if you were to pay $50 for a new pair of shoes at a local shop. Name the parts of the circular-flow diagram that correspond ..
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