One reason that college graduates earn higher wages than non-graduates is because:
A. college graduation serves as a signal of the individual's productivity.
B. there are no additional skills learned in college that increase productivity.
C. college graduates are always less intelligent than non-college graduates.
D. college graduates are less equipped to deal with technological change, as their skills are technology-specific.
Answer: A
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The reported reduction in the exchange-rate pass through to import prices means that U.S. inflation will be relatively insensitive to exchange rate changes
Indicate whether the statement is true or false
Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
A classical model of the economy predicts
A. a negative unemployment rate whenever the economy is in equilibrium. B. full employment in the long run. C. cyclical changes in the unemployment rate. D. the same unemployment rates as the Keynesian model.
Consider the market for blackjack dealers in Las Vegas. In each of the following cases, explain what happens to the equilibrium wage rate and the quantity of blackjack dealers hired
a. Three new large resort casinos open in Las Vegas. b. Fewer students are attending classes to learn to become blackjack dealers. c. Traditionally, blackjack dealing is a field that attracts foreign workers. However, changes in immigration laws have made it more difficult for foreign workers to come to Las Vegas to obtain jobs. The demand for blackjack dealers, however, does not change. d. Advances in technology have increased the popularity of electronic blackjack machines and decreased the popularity of live table games which require the use of a dealer.