When computing a price index, the base year is
A. the most recent year in which the inflation rate was close to zero.
B. the earliest year for which data are available.
C. the year that is chosen as the point of reference for comparison of prices with other years.
D. the most recent year for which data are available.
Answer: C
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An economy's resources include
A) raw materials. B) factories and machinery. C) human knowledge. D) all of the above
In negotiating NAFTA, what two side agreements were reached?
What will be an ideal response?
The demand for labor is derived from the
a. demand for leisure. b. supply of labor. c. demand for final-output goods. d. supply of final-output goods.
Which of the following is a reason why the union wage gap might overestimate the actual effect unions have on wages?
A. Nonunion firms may pay higher wages in order to stave off unionization. B. Unions tend to negotiate better fringe benefits for their members than what nonunion workers receive. C. Higher union-negotiated wages likely attract more productive workers to union jobs. D. The union wage gap can be underestimated but never overestimated. E. Unionized workers tend to work more hours each week than nonunionized workers.