“The higher real wages earned by American workers primarily reflect the fact that Americans have a greater inherent ability to produce goods and services than do foreign workers.” Evaluate
What will be an ideal response?
There is no evidence to suggest that there is an inherent superiority among American workers. However, they have large amounts of capital per worker with which to improve their productivity over many of their less fortunate foreign counterparts. The high productivity in the United States is also related to the abundance of natural resources, high level of technology, and quality of labor in terms of health, education and training, and work attitudes, as well as a relatively stable business environment. It is this high level of productivity resulting from the various factors named which enables American workers to earn high real wages.
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The figure above shows the market for milk. The ________ price that producers must be offered to get them to produce 100 gallons of milk per day is ________
A) maximum; $2.50 B) minimum; $3.00 C) maximum; $4.00 D) minimum; $2.50
If the federal government borrows to build a new dam in North Dakota with a rate of return above the borrowing rate, and later raises federal income taxes to pay the interest, future welfare in the United States is
A) redistributed and lowered overall. B) redistributed but not lowered overall. C) not redistributed but lowered overall. D) not redistributed and not lowered overall.
The price of one product in terms of another commodity is called its
A) relative price. B) money price. C) financial price. D) converse price.
Which of the following was not a factor that contributed to the subprime mortgage crisis?
a. false security derived from FDIC insurance on mortgage loans b. lower down payments c. households devoting 25% or more of their income to mortgage payments d. lending to households with adverse credit ratings