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A country with a civilian population of 100,000 (all over age 16) has 80,000 employed and 10,000 unemployed persons. Of the unemployed, 2,000 are frictionally unemployed and another 4,000 are structurally unemployed. On the basis of this data, answer the following questions:
a. What is the size of the labor force? _______
b. What is the unemployment rate? _______________________________
c. What is the natural rate of unemployment for this country? ____________________
d. Is this economy in recession or expansion? Explain.
Which three key concepts drive intra-industry trade? Explain how each of these three forces justifies intra-industry trade patterns!
The Targeted Jobs Tax Credit (TJTC) – enacted in 1978 and expired in 1994 – offered employers a tax credit for each less-skilled worker they employed. Assume that the tax credit was fixed at $5 per-hourworked by a less-skilled worker. According to ne..
Explain the viewpoints of classical and Keynesian economists. How did the economy that existed at the time of these theories influence them?
A farmer just purchased a tractor for which he had to borrow $20,000. The bank, using an 8% interest rate, offered a choice of three payment plans as shown below. The farmer’s Minimum Attractive Rate of Return (MARR) is 15%. In EXCEL create a Cash Fl..
If the tax elasticity of labor supply were 0.19, by how much would the quantity of labor supplied increase among people in the top U.S. tax bracket if the highest marginal tax rate in the United States were reduced to the level of Bolivia?
To maximize profits, a monopolist should charge as high a price as it likes.
q.motorolas iridium a go-anywhere mobile phone system that beamed signals down from 66 satellites was called the 8th
Suppose price levels were falling 10% per day. How would this affect the demand for money? How would it affect velocity? What can you conclude about the role of velocity during periods of rapid price change?
PPOs and HMOs reduce the overconsumption of health care by A. charging on a fee-for-service basis and reducing administrative costs. B. reducing administrative costs and denying expensive services. C. reducing administrative costs and providing preve..
You will explain monetary policies as they relate to the business environment. What is the effect of the extended period of low interest rates in the US economy on: (a) banks taking deposits, (b) individuals saving for retirement, (c) cities and town..
Can the government rely on seignorage to finance an ever-increasing fiscal deficit? Explain why or why not. Use the appropriate graphs to illustrate your answer.
Illustrate what amount of profit does the industry fail to pick up by refusing to increase output by one unit
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