The phenomenon of wages in many industries changing very little or not at all for a year or more after a change in output is referred by economists as
a. wage lag effect.
b. wage stickiness.
c. compensation inflexibility.
d. inertia.
e. reservation wage effect.
B
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Which of the following is most closely related to the "fair results" approach to fairness?
A) efficient resource use B) having an equal income distribution C) voluntary exchange D) the command system of allocating resources E) price hikes in a natural disaster
Why was so much of the "boom" of the 2000s concentrated in the housing and real estate sectors?
A) The Fed attempted to engineer an increase not only in real GDP, but in particular further the expansion of those sectors. B) The Community Reinvestment Act (CRA) called for banks to offer subprime loans to at-risk customers. C) People were encouraged to "flip" houses because the low interest and rate and easy lending practices made it appear profitable to do so. D) For all of the above reasons.
Refer to Figure 4-1. If the market price is $3.50, what is the maximum number of ice cream cones that Kendra will buy?
A) 1 B) 2 C) 3 D) 4
The increased labor force participation rates for women since the 1970s led most directly to ________
A) an increase in labor demand B) a decrease in labor demand C) a decrease in labor supply D) an increase in labor supply