If workers and firms have rational expectations, they form their expectations using
A) only information provided to them by the government.
B) only information from the past.
C) only information gathered from random sources.
D) all the information available to them.
D
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Generally, the gender pay gap increases as the level of educational attainment
a. increases b. decreases c. neither of the above because it depends on how hard a person works d. neither a nor b because such data are not available
An increase in the wages of truck drivers might be explained by which of the following factors?
A. A reduction in the price of rail transportation B. A reduction in the demand for transportation C. An increase in the price of gasoline D. An increase in competition within the trucking industry
Which of the following is NOT a barrier to entry?
A. patents B. U.S. antitrust legislation C. economies of scale D. licenses
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point D to Point B, the opportunity cost of hybrid cars, measured in terms of motorcycles,
A. initially increases, then decreases. B. increases. C. remains constant. D. decreases.