Explain how globalization has benefitted consumers but has also widened the gap between rich and poor in the United States
What will be an ideal response?
Globalization has brought consumers a wider variety of goods and services at lower cost, and it has increased competition that has led to better-quality products. Globalization has widened the gap between rich and poor because low-skilled workers around the globe have displaced low-skilled workers in the United States, primarily due to lower wages in other parts of the world. Without increases in education and training, these low-skilled U.S. workers will continue to find it difficult to find employment opportunities that will allow them to increase their wages.
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Intertemporal substitution dictates that
a. people will work less in periods of high productivity. b. people will spend more in periods of high productivity. c. people will work more in periods of high productivity. d. people will spend less in periods of high productivity.
In this graph, at point e2, workers ______.
a. begin settling for lower wages
b. begin demanding higher wages
c. realize wages are rising faster than costs
d. realize wages have reached a maximum
When is the unemployment rate zero?
A. Right after a recession ends B. Never C. When GDP growth is at its peak D. Right before a recession starts
A temporary adverse productivity shock would
A. decrease the level of employment. B. decrease the expected future marginal product of capital. C. shift the labor supply curve upward. D. decrease future income.