A COLA automatically raises the wage when
a. GDP increases.
b. taxes increase.
c. the consumer price index increases.
d. the producer price index increases.
c
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In repeated games:
A. a noncooperative outcome is more likely than in a single-round game. B. cooperation never happens. C. a cooperative outcome is more likely than in a single-round game. D. players always cooperate and enjoy a mutually beneficial equilibrium.
When the extraordinary failures of S&Ls drove FSLIC into financial crisis, the
a. government diverted taxes from funding government projects to support the FSLIC b. government created the FDIC to replace the FSLIC c. government created the Resolution Trust Corporation to handle the crisis d. Federal Reserve permanently lowered the discount rate which relieved FSLIC of financial pressure e. Treasury Department issued bonds to cover FSLIC losses
A competitive price-searcher market is characterized by firms
a. being able to choose their price and by low barriers preventing firms from entering or leaving the market. b. being able to choose their price and by high barriers preventing firms from entering or leaving the market. c. having to accept the market price for their product and by high barriers preventing firms from entering or leaving the market. d. having to accept the market price for their product and by low barriers preventing firms from entering or leaving the market.
Which of the following provides the best explanation of why low-income countries generally remain poor?
A. Their political environment and policies often discourage productive activity and reduce the potential gains from specialization and exchange. B. They are oppressed by developed nations that benefit from the cheap goods available from countries with low wage rates. C. They are poorly endowed with natural resources, which are essential for long-term rapid growth. D. When the average income level is low, workers have little incentive to earn higher incomes.