Q1. A substantial number of relatively unskillful persons reported that they can’t find work. At similar time, there are numerous unfilled jobs for relatively skilled people. Apparently, the problem is that there are more unskillful people than unskilled jobs. What is wrong with the reasoning?
Q2. In detail analyze the given statements:
a) The price of cheese falls associative to the price of milk. What is implied regarding the rate of interest? Explain why?
b) Generally there are cheaper prices for matinee performances than the evening performances. Explain why?
c) Allowing the price of goods to increase in period when none of the good is being produced is immoral, as the higher prices don’t induce a larger output. They merely give unwarranted profits to those who are lucky adequate to own the goods. Either prices must be prevented from rising, or the government must take over ownership in order to prevent unjust enrichment. Assess this statement by using economic analysis.
d) Give the definition of the interest rates.