Assess this policy measure and its likely outcomes. What, if any, are the broader implications?
3.Two years ago, Jack Quack bought 1000 shares of ZMQ stock at $1,000 per share. This morning when he checked he found that ZMQ stock was selling for $62.00 per share. Advise Jack on what he should do—dump his shares, hold, buy more, what??? (Notes: There have been no stock splits over the past two years. Also ignore tax considerations. And, if it matters, Jack is 15 years from retirement.)
4. “Except for the law of diminishing returns we could feed the world from a single flower pot.” Evaluate/explain the quote—starting with True or False.
5.The work force of Corporation XYZ is fully unionized. Assume that the union demands and wins a xx% wage increase. Under what circumstances will the union induced wage increase lead to an increase in the total wage bill? (Def.: total wage bill is the total dollars spent on wages) Note: I don’t need help with elementary arithmetic. I am interested in the economics of the issue.
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