Consider two groups of workers of equal skill level and experience: those who collect garbage and those who stuff envelopes with campaign fliers. Which group is likely to be paid more and why?
garbage collectors, compensating differentials
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Which measure of inflation would include consumer goods and capital goods?
A. the Consumer Price Index B. the Retail Trade Survey C. the GDP Price Index D. the Employment Cost Index
In the model of perfect competition,
A) all firms earn zero economic profit in the long run. B) all firms use the lowest-cost technologies. C) all firms take the prevailing market price as given. D) all participants fully exhaust any potential gains from trade. E) all of the above occur.
Assume that an economy is in equilibrium when technological progress causes an increase in total factor productivity
Once the economy has adjusted to its new equilibrium, and assuming that the supplies of capital and labor remain unchanged, which of the following has increased? A) the real wage B) the share of capital income in national income C) the share of labor income in national income D) all of the above E) none of the above
When people look at what has just happened in the economy to conjecture what is about to happen, it is known as ______.
a. gradualism b. indexing c. adaptive expectations d. natural rate