In the Santa Rita silver mines in Arizona in 1870, Mexican miners received about $12 per month while "American" miners received $70 . Although the wages of both groups tended to rise over time, the gap persisted until at least 1910 . Mexican and American miners did the same work and were equally productive. Economists call this pay differential
a. prejudicial differentials.
b. compensating differentials.
c. economic discrimination.
d. Lorenz discrimination.
c
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If real GDP declines in a given year, nominal GDP ________.
A. must also be increasing B. may either rise or fall C. must also be declining D. is likely to remain constant
Why did the Bretton Woods system ultimately break down?
a. The refusal of OPEC countries to accept payment for oil in gold. b. The refusal of surplus countries to devalue as required by law. c. An inability to devalue the U.S. dollar despite chronic payments deficits. d. An inability to adequately measure balance of payments surpluses and deficits.
A favorable supply shock will cause inflation to
a. rise and shift the short-run Phillips curve right. b. rise and shift the short-run Phillips curve left. c. fall and shift the short-run Phillips curve right. d. fall and shift the short-run Phillips curve left.
The competitive market price of a good
A. is equal to the value consumers place on the last unit they purchased. B. must reflect both the value to consumers and cost to producers. C. must exceed the cost of producing an extra unit of the good. D. must be less than what consumers are willing to pay for an additional unit of the good.