Suppose Labor Is Perfectly Competitive and There Are Only Two

question 25

Multiple Choice

Suppose labor is perfectly competitive and there are only two periods.For which values of the interest rate,r,costs of training,i,and value added by training,V,is the training opportunity inefficient?

• A) i = $50,V = $150,r = 10%
• B) i = $40,V = $100,r = 10%
• C) i = $60,V = $125,r = 5%
• D) i = $90,V = $125,r = 5%
• E) i = $90,V = $100,r = 15%

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Definitions:

Oils

Organic substances that are liquid at room temperature and are insoluble in water but soluble in organic solvents.

Fatty Acid Structures

The molecular arrangement of fatty acids, which typically consist of long hydrocarbon chains with a terminal carboxylic acid group; can be saturated or unsaturated.

Acid Base Hydrolysis

A reaction where water and an acid or base catalyze the breakdown of a molecule, often leading to the cleavage of chemical bonds.

Triacylglyceride

A lipid molecule made up of three fatty acids esterified to glycerol, serving as the primary form of energy storage in animals.