Which of the following statements does not accurately describe the market for labor?
a. The characteristics of workers, such as their education and experience, the characteristics of jobs, such as their pleasantness or unpleasantness, and the presence or absence of discrimination by employers all determine equilibrium wages.
b. Labor unions, minimum wage laws, and efficiency wages all may increase wages above their equilibrium level.
c. Firms are willing to pay more for better-educated workers as long as there is an excess supply of this type of worker.
d. Discrimination by employers against a group of workers may artificially lower wages for that group.
c
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Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and real GDP in the context of the Three-Sector-Model?
a. The real risk-free interest rate rises, and real GDP rises. b. The real risk-free interest rate falls, and real GDP rises. c. The real risk-free interest rate rises, and real GDP remains the same. d. The real risk-free interest rate and real GDP remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
During the 1990s, the members of OPEC operated independently from one another, causing the world market for crude oil to become close to
a. a monopoly market. b. an oligopoly market. c. a duopoly market. d. a competitive market.
Crowding out occurs when expansionary fiscal policy leads to
A) a higher money supply and a reduction in net exports. B) a higher money supply and a reduction in the interest rate. C) a higher interest rate and a reduction in private investment. D) a higher price level and a reduction in the money supply.
When the IMF provides loans to developing countries, it often requires these countries to adopt:
A. a contractionary fiscal policy and an expansionary monetary policy. B. contractionary monetary and fiscal policies. C. expansionary monetary and fiscal policies. D. a contractionary monetary policy and an expansionary fiscal policy.