Other things constant, when the work opportunities in an occupation are unstable (that is, layoffs are common), the hourly wages of workers in the occupation will tend to be
a. higher than the wages of workers with otherwise similar jobs.
b. lower than the wages of workers with otherwise similar jobs.
c. below market equilibrium.
d. above market equilibrium.
A
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During a recession, people drop out of the labor force because they are unable to find a job. All else the same, this
A) increases the official U-3 unemployment rate. B) decreases the official U-3 unemployment rate. C) does not change the official U-3 unemployment rate. D) increases the official U-3 unemployment rate and the labor force participation rate.
Isabella is contemplating investing $10,000 in an investment. It is expected to yield $4,000 at the end of each of the next three years. The interest rate is 5 percent. What is the net present value of the expected revenues from the investment?
a. $8,426 b. $9,947 c. $10,893 d. $12,000