Question
What do we mean when we say that capital is productive? How do we measure this productivity? What does productivity have to do with the investment demand curve?

Subject
business economics

Question
In general the aggregate demand for and the supply of labor increases over time. Can we predict what will happen to real wage rates and employment over time? What factors are responsible for the shift in the demand curve? In the supply

Question
“Kevin (a highly skilled businessman) earns $ 150,000 a year. If he were to return to his native New Guinea (where there are more limited business opportunities), Kevin would be able to earn only $ 5,000 a year. This proves both that

Question
How does the interest rate serve to equalize the desired rate of saving and the desired rate of investment? Would this function be served if the government placed an upper limit on the interest rate lenders could charge? How would such a

Question
In equilibrium, the interest rate equates the willingness of people to give up present goods in return for future goods and the ability of the economy to transform present goods into future goods. Explain.

Subject
business economics

Question
Discuss the three reasons for equilibrium wage rate differences given in the text. Which one, or more, accounts for differences in wage rates between engineers and elementary school teachers? College professors and high school teachers? Basket-ball superstars and basketball coaches? Doctors and

Question
Edie chooses to work 90 hours per week when the wage rate is $ 16 per hour. If she is offered time-and-a-half ($ 24 per hour) for “overtime work” (i. e., hours in excess of 90 per week), will she choose to

Question
Economists Ross Eckert and Richard Leftwich have noted that in the early 1950s, over 60 percent of MBA graduates from leading business schools took their first jobs in manufacturing and 10 percent in investment banking and consulting. Nowadays, no more than 20

Question
Suppose that firms in an industry use two inputs, labor and capital. If the price of labor increases, then the firms will demand less labor and more capital. True, false or uncertain? Explain your answer.

Subject
business economics

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Question
Bad Breath, Inc., sells its output at $ 1 per unit into competitive markets. Bad Breath’s factory is the only employer of labor in Gilroy, California (garlic capital of the world). It faces a supply from competitive workers of QL = w,