A farmer discovers a natural gas reserve on his property. He can extract the natural gas for a profit of $40 per unit now, $55 per unit in one year, $57 per unit in two years, and $60 in three years. The current market rate of interest is 6 percent. When should the farmer extract the natural gas to obtain the most profit per unit in present value terms?

Refer to Figure 17-4. Which of the following is true at W0?

A) The substitution effect is larger than the income effect. B) The income effect and the substitution effect are equal. C) The income effect is larger than the substitution effect. D) The supply curve is positively sloped.

Unemployment arising from a mismatch of skills is called: a. frictional unemployment. b. structural unemployment. c. seasonal unemployment. d. cyclical unemployment

e. underemployment.