Trade between countries is only based on absolute advantage
Indicate whether the statement is true or false
False
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If the Federal Reserve announces that its target for the federal funds rate is rising from 4 percent to 4.25 percent, how do you expect workers and firms to react?
A) If the Fed's announcement is not credible, workers and firms will not expect inflation to fall so they will reduce their consumption and investment spending, which will increase aggregate demand and reduce inflation. B) As long as the Fed's announcement is credible, workers and firms will reduce their consumption and investment spending, which will reduce aggregate demand and reduce inflation. C) As long as the Fed's announcement is credible, workers and firms will increase their consumption and investment spending, which will increase aggregate demand and inflation. D) Workers and firms will incorporate the increase in interest rates into their expectations of inflation, and they will expect inflation to rise as a result of Fed's policy announcement.
Out of approximately 150 million workers in the U.S. economy, what percentage of the total are paid the minimum wage?
a. Less than 2% b. Approximately 5% c. Approximately 8% d. More than 10%
Union shops are subject to potential competition
A. Since striking union members may be ordered back to work by the president. B. From replacement or substitute workers. C. Since most union members do not take strikes seriously. D. Because some union shop workers refuse to join the union.
In which of the following examples is excess burden not present?
A. Harriet decides to give up her Saturday hours at her law office after income tax rates rise. B. Rudolf still smokes three packs a day even after the excise tax on cigarettes rose 10 cents a pack. C. Wilma reduced the automatic payroll deduction to her savings account after the tax on interest was imposed. D. Harper decided to take a vacation in Bermuda rather than invest in stocks after the tax rate on capital gains was increased.