Joss is a marketing consultant. Iris and Daphne are potential customers interested in commissioning Joss to undertake a market survey and compile the findings in a report
Iris is willing to pay $500 for the service while Daphne is willing to pay $800. Suppose that the opportunity cost of Joss's time is $1,200. Assume that Iris and Daphne do not know each other. If the price of the report is $800 per copy
A) only Daphne will purchase Joss's services and Joss will undertake the job for her.
B) both Iris and Daphne will purchase Joss's services and Joss will undertake the job.
C) only Daphne will want to purchase Joss's services but Joss will not be willing to do the work.
D) neither Iris nor Daphne will commission the work.
C
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If the village of Happyville has 150 residents, of which 50 are children or senior citizens, 95 are working, and 5 are actively seeking work, the unemployment rate is:
A) 5%. B) 3.3%. C) 36.7%. D) 33.3%.
If the capital stock increases faster than employment, then we would expect
a. both output and labor productivity to rise b. output to rise but labor productivity to fall c. both output and labor productivity to fall d. output to fall but labor productivity to rise e. output to rise but labor productivity to remain unchanged