In comparing a job that requires a high level of skill to one for a job that requires a low skill level, the high-skill job
a. will always command a higher wage than the low-skill job
b. can command a higher wage only if there is sufficient demand for the output produced by the job
c. will command a higher wage whenever the nonmonetary characteristics of the two jobs are equivalent
d. will command a higher wage whenever there is a relatively low supply of labor with the required skill level
e. will command a higher wage whenever the two labor markets are perfectly competitive
B
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The capital and financial account is the record of
A) the nation's imports and exports of capital goods. B) foreign investment in the nation minus the nation's investment abroad. C) a nation's international trading, borrowing, and lending. D) changes in the government's holdings of foreign currency. E) payments for imports, receipts for exports, net interest, and net transfers.
Dell uses outsourcing, that is, Dell buys the components of the computers it produces from other firms. This is an example of
A) firm coordination. B) a partnership. C) a command system. D) market coordination.
If a labor market that was previously competitive becomes controlled by a monopsony, the wage rate ________ and employment ________
A) rises; increases B) falls; decreases C) rises; decreases D) falls; increase
A country simultaneously raises tariffs on manufactured goods and overvalues the exchange rate. Why might these seemingly contradictory policies be pursued together?
What will be an ideal response?