Both countries have an overall unemployment rate

Assignment Help Business Economics
Reference no: EM13984030

Consider two hypothetical countries. In Country A, 20 percent of the labor force is unemployed for half the year and employed for the other half; the remaining 80 percent of the labor force is never unemployed. In Country B, 100 percent of the labor force is unemployed for 10 percent of the year and employed for the other 90 percent of the year. Note that both countries have an overall unemployment rate of 10 percent.

Reference no: EM13984030

Questions Cloud

Theory of gains from trade have to say about that criticism : One critic of the North American Free Trade Agreement argued that "it can't be in our interest to sign this deal; Mexico gains too much from it." What does the theory of the gains from trade have to say about that criticism?
Perfectly competitive market with no externalities : What property does market equilibrium have for a perfectly competitive market with no externalities?
Assume the marginal revenue product : Assume the marginal revenue product ( MRP ) for minority workers is given by MRP = 40 − 5N m , where N m is the number of minority workers. The market wage for minorities is $5/hr. Discriminating firms devalue the contributions of minorities at a rat..
Face of rising expenditures the budget surplus may increase : In the late 1990s, the federal Minister of Finance announced that expenditures would rise, yet he still predicted that the budget surplus would increase. How is it possible that in the face of rising expenditures the budget surplus may increase? Unde..
Both countries have an overall unemployment rate : Consider two hypothetical countries. In Country A, 20 percent of the labor force is unemployed for half the year and employed for the other half; the remaining 80 percent of the labor force is never unemployed. In Country B, 100 percent of the labor ..
Assume that the unemployment rate : Assume that the unemployment rate is 7% and GDP is $4,000 billion. What is a rough estimate of the potential GDP if the NAIRU is 5%? Assume that potential GDP is growing at 3% annually. What will potential GDP be in 2 years? How fast will actual GDP ..
What determines interest rates : What determines interest rates? What is the role of risk? Of term? Of inflation? Of transactions costs? Please be specific like what will cause it to go UP and what will cause it to go down and why.
Difference in the payoffs to productive characteristics : Where W is the hourly wage for men and females, EDUC is years of education, EXP is total years of experience, and TEN is tenure with ones current employer. What fraction of the gender wage gap is explained by differences in the production characteris..
Incorporating corporate social responsibility : Find an example of an organization that is incorporating corporate social responsibility (CSR) into its operations and overall management. Provide a brief summary regarding what the organization is currently doing. In your opinion, do sport managers,..

Reviews

Write a Review

 

Business Economics Questions & Answers

  Risk premium it charges on its loans

The risk premium it charges on its loans is classified as profits in economics.

  Elucidate how much does total revenue change

When the monopolistically competitive firm lowers price from $16 to $12, elucidate how much does total revenue change.

  Downward-sloping demand curve

Suppose that the demand for orange increases. Carefully explain how the rationing function of price will restore market equilibrium.

  Explain carver memorial hospital surgeons

Explain Carver Memorial Hospital's surgeons have a new procedure that they think will decrease the time.

  Compute the sub game perfect equilibrium of this market game

Consider the following market game: An incumbent firm, called firm 3, is already in an industry. Two potential entrants, called firms 1 and 2, can each enter the industry by paying the entry cost of 10. First, firm 1 decides whether to enter or not. ..

  Resource that is necessary to produce many goods

The setup cost is $100 per order up to 99. For orders of less than a pallet, the setup cost is $200. The setup cost for pallet loads is $1000. The holding cost is 1% of the purchasing cost per item per week.

  Von neumann morgenstern axioms

The consumer is indifferent between B and a lottery ticket with probabilities. Construct a set of von Neumann - Morgenstern utility numbers for the four situations.

  If the prices of all products are raising

If the prices of all products are raising at 5 percent per year and your employer gives you a 5 percent salary increase, are you better off, worse off, or equally well off in comparison with your situation a year ago? Use indifference curve analysis ..

  What is the funds information ratio

A fund has an alpha of 0.73 percent and a tracking error of 4.9 percent. What is the fund's information ratio?

  Illustrate what most such asly cause production possibility

Illustrate what most such asly cause the production possibility curve for vcrs also food to shift outward.

  What affects the value of money-credit cards money

Are credit cards money? Explain. Why do we accept money as payment? What affects the value of money? What is the purchasing power of dollar? How higher prices affect purchasing power of dollar?

  Derive an expression for average cost

Derive an expression for average cost. Derive an expression for marginal costs. Is there any range of production characterized by scale of economies? At what production level are scale economies exhausted?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd