Income inequality in the United States has increased in part due to technological change. How does technological change contribute to income inequality?
A) It reduces the cost of producing goods and therefore lowers the value of labor services.
B) It is responsible for a majority of new products on the market, and these products are only affordable to higher-income households.
C) It allows manufacturers to produce products with less labor, and this reduction in the demand for labor lowers wages at all skill levels.
D) It has created many higher-income jobs for skilled and trained workers, leaving the income of less-skilled workers relatively unchanged by comparison.
D
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If the interest rate is 10% then the net present value of the investment is
a. $5,000 b. - $9,091 c. -$15,290 d. -$21,901
Which of the following would slow down productivity growth?
a. A change in the composition of the workforce so that more middle-aged people and fewer young people are working b. A change in the composition of the workforce so that organizations hire more men who work steadily throughout the year than men who frequently enter and leave the workforce c. The quality of education remaining unchanged d. People starting to invest more in capital goods e. Firms starting to cut down the size of their labor force
The task of deciding which consumer gets each of the goods produced in a free-market economy is solved by
a. the price system. b. the industries which produce the goods. c. the central planners. d. citizens with political power.
Carson’s bank has a reserve requirement ratio of 20 percent. What is the money multiplier for Carson’s bank?
a. 2 b. 8 c. 5 d. 20