If the supply of lower-skilled workers exceeds the demand, then average wages in the lower quintiles of the income distribution will:
a. increase.
b. decrease.
c. require government supplementation.
d. equalize.
b. decrease.
If the supply of lower skilled workers exceeds the demand, then average wages in the lower quintiles of the income distribution will decrease. The combination of forces in the high-skilled and low-skilled labor markets leads to increased income disparity.
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The above figure shows the market for steel ingots. If the market is competitive, then the deadweight loss to society is
A) a. B) b. C) c. D) zero.
The closer monopolistic competition gets to perfect competition
a. the more vertical the AR curve. b. the more horizontal the AR curve. c. the greater the difference between AR and MR. d. the greater the profit.
The _____ lag is typically longer for fiscal policy than monetary policy
a. supply b. cyclical c. effectiveness d. implementation e. recognition
"Purchasing power" of money:
a. Is the value of money measured in terms of how many goods and services it will buy. b. Is the value of a currency expressed in a foreign currency. c. By definition, falls over any given period of time. d. Is the value of money adjusted for price differences among countries. e. Correlates positively with the inflation rate.