Answer the following statements true (T) or false (F)
1. In monopsony situations, a minimum wage might increase wage and employment levels.
2. Education is a form of human capital and it helps explain wage differentials.
3. Wage differentials are fully explained by differences in productivity and human capital among various workers.
4. There will be no principal-agent problem if a firm's owner (like a business consultant) does all the work of the firm.
1. TRUE
2. TRUE
3. FALSE
4. TRUE
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Refer to the above figure. The classical aggregate supply curve is represented by ________ and the Keynesian short-run aggregate supply curve is represented by ________
A) curve 2; curve 1 B) curve 2; curve 3 C) curve 3; curve 4 D) curve 2; curve 4
If the consumer's budget constraint is given by 10F + 5S = 100 where F is food and S is shelter, how much food can he buy if he purchases 2 units of shelter?
A. 20 B. 9 C. 5 D. 10
If snowboarding increases in popularity, what would be expected to happen to the demand and wages of workers who make the snowboards?
A. demand decreases and wages increase B. demand decreases and wages decrease C. demand increases and wages decrease D. demand increases and wages increase
Changes in government spending and tax revenues for the purpose of achieving a full-employment and noninflationary level of domestic output is called:
A. monetary policy. B. fiscal policy. C. industrial policy. D. trade policy.