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Distinguish between general and specific on-the-job training. Who normally pays for general training? Specific training? Why the difference? Are there any exceptions to these generalizations? Explain.
The Arkansas state legislature enacts a statute that prohibits the advertising of video games “because the games might be harmful to minors.” Despite this new statute, the president of Games Marketing, Inc. (GMI), orders GMI marketers to place ads in..
Which of the following is a major difference between the AD-AS model and the dynamic AD-AS model? The dynamic .AD-AS model assumes the economy does not experience long-run growth, while the AD-AS model assumes there is constant inflation in the ec..
Consider a consumer whose preferences over the goods are represented by the utility function U(x; y) = xy2. Recall that for this function the marginal utilities are given by MUx(x; y) = y2 and MUy(x; y) = 2xy. (a) What are the formulas for the indier..
To counteract the recent crisis, the Federal Reserve has increased the monetary base by trillions of dollars. However, the total money supply in the economy has not increased significantly. Explain this paradox using the model of money supply.
Assume a household receives a grant of $500 of food stamps every month. How will this household's budget line be affected.
Suppose there are 100 identical firms in the perfectly competitive note-card industry. Each firm has a short-run total cost curve of the form: ST C = 0.2q^2 + 4q + 10 and MC = 0.4q + 4. Calculate the firm’s short-run supply curve with q (the number o..
Assume Okun's law holds also a one percent (%)age point rise in the unemployment rate reduces real output by 2% of full-employment output. The expectations-augmented Phillips curve.
The Fed seeks to promote stability of financial markets because
Explain why quality became the most important issue facing American business in the 1980s. In addition to economic competition from Japan, what other factors may have contributed to the importance that quality has assumed?
Are the profits of entrepreneurs obtained through coercion or through persuasion? (definition of terms: coercion = inducing people to cooperate by threatening to reduce their options. persuasion = inducing people to cooperate by promising to expand t..
Why is investment significant to economic growth? Please explain. What benefits does economic growth of economy provide to the average individual living in the economy? How can the government encourage economic growth via corporate taxes and other me..
Because health insurance tends inevitably to cause moral hazard, will the population necessarily be over insured (in the sense that a reduction in insurance would improve welfare)? Are there beneficial factors that balance against the costs of welfar..
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