Question

What kind of unemployment can be economically efficient in a world of positive transaction costs? (Hint:...

What kind of unemployment can be economically efficient in a world of positive transaction costs? (Hint: the natural rate is not an adequate answer.)

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

ANSWER ::

Ideal Unemployment Occur Where All The Vacancies Have Filled By The Job Seeker And There Is Only Some Frictional And Voluntary Unemployment Exist in The Economy so It Shows The Ideal Unemployment Which Provide Economically Efficient And World Has a Positive Transaction Cost Because Workers Can Temporarily Searching For Job And After That they Get The Reliable Job For Them So It Shows The Positive Impact On The Economy And Encourage Economic Efficiency.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What would be transaction costs be for a grocery store to get their products to the...
What would be transaction costs be for a grocery store to get their products to the store? What would the social costs be for the same store?   Hint: Transaction costs and NOT transportation costs. Give examples to support your answer.
Suppose an economy is in an inflationary gap. What can we infer about the unemployment rate?...
Suppose an economy is in an inflationary gap. What can we infer about the unemployment rate? It is above 4.5% It is equal to 4.5% It is below 4.5% Draw a graph with SRAS and AD that is operating at the short-run equilibrium AND in an inflationary gap. What must be true? RGDP produced = RGDP consumed RGDP produced > RGDP consumed RGDP produced < RGDP consumed Draw a graph with SRAS and AD that is operating at the short-run...
Tax Shields. You live in a world without transaction or information costs and with a fixed...
Tax Shields. You live in a world without transaction or information costs and with a fixed real investment policy (all positive NPV projects are undertaken regardless of the firm’s capital structure). Unfortunately, the government is still around to tax you. Your RV rental firm is deciding between raising $10 million via common stock or $10 million via a twenty-year coupon bond with a face value of $10 million. The coupon rate on the bond would be 10% and the corporate...
Explain how the official BLS unemployment rate can increase even if the economy generates net positive...
Explain how the official BLS unemployment rate can increase even if the economy generates net positive jobs in the month? a. What may likely to happen to unemployment rate if CPI continues to pick up? Please, short and precise answer. Thank you!
a. What is the role of the World Trade Organization (WTO)? b. What kind of public...
a. What is the role of the World Trade Organization (WTO)? b. What kind of public good does it try to provide? c. What is its structure? Do some countries have a greater voice in setting policies? Please answer all questions on the World Trade Organization, NO PLAGIARISM.
What is the Natural Rate of Unemployment? And how does its rise affect output in the...
What is the Natural Rate of Unemployment? And how does its rise affect output in the AD/AS Model? (Hint: draw figure and show shifts
Please explain the answer to the following question: Assume zero transaction costs. If the 90-day forward...
Please explain the answer to the following question: Assume zero transaction costs. If the 90-day forward rate of the euro underestimates the spot rate 90 days from now, then the real cost of hedging payables will be: A. Positive B. Negative C. Positive if the forward rate exhibits a premium, and negative if the forward rate exhibits a discount d. Zero
Question: Question 2 [25 marks] It can be argued that natural monopolies are more efficient that perfectly...
Question: Question 2 [25 marks] It can be argued that natural monopolies are more efficient that perfectly ... Question 2 [25 marks] It can be argued that natural monopolies are more efficient that perfectly competitive markets in that they are able to bring the unit costs of production lower than a perfectly competitive market. 2.1 With the aid of a diagram, discuss whether this is true for a hypothetical market that produces the landline telephone service to that economy. 2.2 Using...
Topic: Why is unemployment so high in Europe? Briefly discuss. Optional reading: You can use any...
Topic: Why is unemployment so high in Europe? Briefly discuss. Optional reading: You can use any Web browser to search for the words “European unemployment.” Just by scanning the headlines, see how many possible explanations you can list. Why Is Unemployment So High in Europe? Between World War II and the mid-1970s, unemployment in Western Europe was low. From 1960 to 1974, for example, the unemployment rate in France never got as high as 4 percent. The worldwide recession of...
High electricity costs have made Farmer Corporation’s chicken-plucking machine economically worthless. Only two machines are available...
High electricity costs have made Farmer Corporation’s chicken-plucking machine economically worthless. Only two machines are available to replace it. The International Plucking Machine (IPM) model is available only on a lease basis. The lease payments will be $97,000 for five years, due at the beginning of each year. This machine will save Farmer $37,500 per year through reductions in electricity costs. As an alternative, Farmer can purchase a more energy-efficient machine from Basic Machine Corporation (BMC) for $450,000. This machine...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT