In recent years, the increasing relative wage of skilled labor has been mostly due to
A) a decrease in the supply of skilled labor that exceeds the decrease in demand.
B) an increase in the demand for skilled labor that exceeds the increase in supply.
C) a decrease in the supply of, and increase in the demand for, skilled labor.
D) government laws promoting the hiring of skilled labor.
E) government subsidies provided to college students.
B
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For many products, such as fast foods, a variety of prices can be found, but sellers with higher prices can expect to sell their products because
A) arbitrage will quickly eliminate price differences. B) their demand is perfectly inelastic. C) firms differentiate products in many ways, for example, higher-priced fast food restaurants may offer better service. D) consumers are not sensitive to prices.
All else constant, an increase in the number of buyers in the market for cell phone service would cause:
A) equilibrium price and quantity to increase. B) equilibrium price and quantity to decrease. C) equilibrium price to increase and equilibrium quantity to decrease. D) equilibrium price to decrease and equilibrium quantity to increase.
The consumption function is a graphical representation of the relationship between _____
a. real gross domestic product and aggregate expenditure b. nominal gross domestic product and consumer expectations about future prices c. nominal gross domestic product and the rate of inflation d. gross national product and the exchange rate
Answer the following statements true (T) or false (F)
1. Public policy has been ineffective in alleviating the resource misallocation problem in American agriculture. 2. The price and income support programs for agriculture have given the most benefit to those farmers with the most need for the government assistance. 3. Farmers, though a small proportion of the population, can impose a large total cost to taxpayers in the form of agricultural subsidies because the average cost imposed on each individual taxpayer is small and not given much attention by a large number of taxpayers. 4. Agricultural price support programs result in consumers paying lower prices for the product. 5. Domestic farm subsidies improve world trade and contribute to greater efficiency in the international allocation of agricultural resources.