Assume that empirical evidence shows a difference in mean earnings between two groups, say, majority and minority workers. What conclusion may be drawn?
a. The group with the lower earnings is less productive.
b. The group with the lower earnings is being discriminated against.
c. Any of the above statements could, either partially or entirely, explain the difference in the mean earnings.
d. The group with the higher earnings has a larger quantity of human capital.
c. Any of the above statements could, either partially or entirely, explain the difference in the mean earnings.
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In the above table, the marginal propensity to save is
A) 0.6. B) 0.8. C) 0.2. D) 0.4.
The presence of navigable rivers and fertile soil is seen as a source of economic prosperity under the:
A) location hypothesis. B) geography hypothesis. C) culture hypothesis. D) institutions hypothesis.
Prior to 2008, bank managers looked on reserve requirements
A) as a tax on deposits. B) as a subsidy on deposits. C) as a subsidy on loans. D) as a tax on loans.
Which of the following products will be sold by a differentiated oligopoly?
a. Automobiles b. Dairy products c. An ingot of steel d. A barrel of oil