When price level in the United States rises,
a. there is a increased demand for borrowed money.
b. producers' demand for new machinery increases, contributing to an increase in aggregate demand.
c. Americans tend to buy more foreign goods and services.
d. the French, Canadians, and Japanese would find our exports more attractive.
e. to replenish the value of your real wealth, you would save less and consume more.
c
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Which of the following statements is true?
A) A worker who undertakes general training is likely to earn above his value of marginal product. B) Firm-specific training results in gains to a worker and not to an employer in the labor market. C) Job-specific training results in gains to a worker's employer, but it does not result in gains to the worker in the labor market. D) Training received by a worker does not affect his wages as wage rates are determined by the forces of demand and supply in the labor market.
The only two ways of dealing with the principal agent problem are the use of long-term contracts and monitoring
Indicate whether the statement is true or false
Economists view the fact that Florida grows oranges, Texas pumps oil, and California makes wine as
a. confirmation of the virtues of free trade. b. confirmation of the infant-industry argument. c. confirmation that free trade agreements are not necessary. d. confirmation that specialization in absolute advantage works.
The fact that wage differentials continue to exist across different groups of workers leads economists to believe that
a. firms apparently are not profit maximizers. b. discrimination by customers is the most common type of economic discrimination. c. the market has failed to properly allocate wages to different workers. d. differences in human capital and job characteristics must be important in explaining the differences in wages.