Which statement is false?
A. Differences in wage rates are partially explained by differences in productivity.
B. In general, when output per labor-hour increases, real wages rise by a larger percentage.
C. The demand for labor in a particular market is the sum of all the firms' MRP curves.
D. If you are earning $20,000 a year today and you were to earn $40,000 a year 10 years from now, your money wages have increased.
B. In general, when output per labor-hour increases, real wages rise by a larger percentage.
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Holding the money deposits of businesses and households and making loans to the public are the basic functions of
A. the Federal Deposit Insurance Corporation and the Federal Savings and Loan Insurance Corporation. B. district banks of the Federal Reserve System. C. the Open Market Committee and the Board of Governors. D. commercial banks and thrift institutions.
How did the Troubled Asset Relief Program (TARP) help the banks in the U.S. during the financial crisis of 2007-2009?
What will be an ideal response?
To assure a well-defined solution to the consumers' intertemporal choice problems, we must assume that consumers' preferences exhibit the properties that
A) consumers are all identical and that more is always preferred to less. B) more is preferred to less and that consumers prefer diversity. C) consumers like diversity and that more is sometimes preferred to less. D) more is sometimes preferred to less and that first-period consumption and second-period consumption are both normal goods.
Suppose the log-linear demand for widgets is found to be
Ln(Q) = 1.5 - 2ln(p) According to this equation, a 10% increase in price will decrease Q by what percentage? What is the price elasticity of demand?