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With reference to output and substitution effects, explain why and how an increase in the wage rate of autoworkers willgenerate a negative employment response in the long run than in theshort run. Assume no changes in prices on non labour input and assumelabour productivity remains constant.
It is well-known (from chapter 10 in the text that is not covered by this test) that college graduates tend to migrate across state lines much more than high school graduates do. What does this imply about the relative willingness of state government..
Farmers can plant either corn or soybeans in their fields. Suppose that a new technology for converting corn into liquid fuel increases the demand for corn. Which of the following is most likely to? occur?
Calculate elasticity for each variable. On this basis, examine relative impact that each variable has on demand. Illustrate what implications do these results have for industry's marketing and pricing.
In the mid 1980s female nurses became increasingly aware that a relatively large number of attractive job opportunities existed outside the medical service industry. In fact large number of colleges offered life and transfer credits for nurses so tha..
Suppose that members of Congress successfully eliminated the Commerce Department, and in so doing the federal government no longer collected or distributed economic data (including inflation data). What impact would this have on the short-run aggrega..
Chapter One's discussion of American Political Culture identified important core values that have served as important elements of American History. Which of these core values is the most important in today's society? Do you think any of them have dec..
Fetzer valves can be made in either China or the United States, but because labor in the United States is more skilled, on average, than labor in China, the production technologies differ. Consider the two production isoquants in the figure. Each rep..
The year is 2035. In many occupations, robots are replacing humans. As it turns out, robots make very good house cleaners, but very poor ski instructors. Assuming the other determinants of demand for the two services are roughly similar, you would ex..
What does central bank independence mean? Which dimensions are included? Politically independent monetary bank is an important prerequisite for currency stability
Elucidate how a bartender would know that the price of an exotic drink was too low or too high. Provide adequate conceptual justifications.
A few industries in the United States have convinced the political system to allow large firms to work together legally. In particular collegigate and professional sports teams have been given legal authority to cooperate to limit competition. Does t..
In an open economy, the condition for equilibrium in the goods market is different from the condition for a balanced trade account. Explain using words or equations (or both if you wish). Draw a diagram that illustrates a situation where the goods ma..
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