Two jobs have different training requirements, and the job that requires more extensive training currently pays $20 more per hour. The jobs are equivalent in all other respects. If labor is migrating from the job with lower training requirements to the job with greater training requirements, then
a. the equilibrium compensating wage differential is more than $20 per hour
b. the equilibrium compensating wage differential equals $20 per hour
c. the wage rate will drop for the job with lower training requirements
d. the wage rate will drop for the job with greater training requirements
e. labor supply will increase for the job with lower training requirements
D
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A move up, along the short-run Phillips curve represents a decrease in the unemployment rate.
Answer the following statement true (T) or false (F)
In which of the following regions would you most expect to see labor-intensive production?
a. Japan b. Western Europe c. southeast Asia d. the United States
Which of the following would call for inpayments to the United States?
A. Gold flows into the United States. B. U.S. firms sell insurance to Brazilian shippers. C. The United States sends foreign aid to developing countries. D. The United States imports German automobiles.
The inflation rate measures the
A) average price of the goods and services consumed by urban consumers. B) percentage change in the CPI from one year to the next year. C) cost of the CPI market basket at current period prices divided by the cost of the CPI market basket at base period prices. D) percentage change in the quantity of goods and services consumed by urban consumers. E) cost of the CPI market basket at base period prices divided by the cost of the CPI market basket at current period prices.