2. (4 points) consider two cities, flexville and rigid city, that have the same equilibrium wage and the same equilibrium total employment. the export industries in the two cities produce the same good. in flexville, export firms produce with variable factor proportions—that is, they can easily adjust the amount of labor in response to changes in the wage, i. e., the price of labor. in rigid city, export firms produce with fixed (or less variable) factor proportions, meaning it is quite difficult to change the amount of labor. suppose that both cities find a way to increase the quality of residential public services (e. g. public schools, parks, libraries) without increasing taxes. use two supply-demand graphs, one for each city, to show the effects of the improvements in public services on • equilibrium employment • the equilibrium wage

Which of the following is an example of groupthink? select one: a. the five officers of tricom are planning a venture they know to be highly profitable. two know the plan to be illegal. nevertheless, they do not voice their concerns, but go along with the team's plan b. the five officers of tricom devise a highly profitable plan. tim, the cfo, points out to the group that the plan will likely garner the company a good deal of negative publicity. tim states that he will not endorse the team's plan c. jim, dean and dax draw up plans for a new printing company. they have all thought through their plans and no one has any criticisms or concerns d. two africans approach a motor company for a dealership. the company informs them that the vast majority of black dealers are not successful in making a profit they convince the africans against making the deal