Workers in industrial countries earn much higher wages than workers in developing countries because:
a. the industrial countries are labor rich and capital poor economies.
b. the industrial countries lack a steady supply of unskilled laborers.
c. the industrial countries produce labor intensive goods.
d. the marginal productivity of labor is low in the industrial economies.
e. the marginal productivity of labor is high in the industrial economies.
e
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In the Keynesian cross diagram, a decline in autonomous consumer expenditure causes the aggregate demand function to shift down, the equilibrium level of aggregate output to ________, and the IS curve to shift to the ________,
everything else held constant. A) rise; left B) rise; right C) fall; left D) fall; right
If Intel moves first and makes a large investment in a chip fabrication plant in Bolivia in exchange for tax credits, Intel has made ________ and Bolivia ________
A) a tactical error; will nationalize the plant B) a specific investment; will create the tax credit C) a specific investment; has a hostage D) a general investment; no longer has to grant the tax credits
Suppose that consumer income decreases and that hamburger is an inferior good. Which of the following will occur in the market for hamburger?
A) Market clearing price will rise, and equilibrium quantity will rise. B) Market clearing price will fall, and equilibrium quantity will fall. C) Market clearing price will rise, and equilibrium quantity will fall. D) Market clearing price will fall, and equilibrium quantity will rise.
Malfeasance at Enron, a Houston-based energy firm, led to overstatement of revenues by almost $92 billion. As Enron closed its operations, U.S. energy prices remained stable. This may have been evidence that
A) Enron could charge whatever price it wanted to for energy. B) there was lack of any competition, so Enron was the winner. C) there is a competitive market in energy distribution in the United States. D) the accounting profession needs to review its policies quickly.