All Pittsburgh police officers must go through the same training program, but police officers assigned to the narcotics squad earn 10% more than police officers assigned to guard the city courthouse. This 10% difference in pay is an example of a
A. utility differential.
B. human capital differential.
C. compensating differential.
D. transfer payment.
Answer: C
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Consider the following statement, "The Federal Reserve fights recessions by increasing the money supply so people will have more money to spend." What is wrong with the statement and how can it be corrected?
What will be an ideal response?
Which of the following was NOT considered to have been a drawback of the pre-1914 gold standard?
A) It sometimes led to inflation, which several times in the late nineteenth century caused recessions in the United States. B) Countries had little control over their domestic monetary policies. C) Countries with trade deficits experienced deflation. D) Changes in the world money supply were strongly influenced by gold discoveries.
Which of the following would most likely not cause market demand for a normal good to decline?
a. An increase in the price of a substitute. b. An increase in the price of a complement. c. A decline in consumer income. d. Consumer expectations that the good will go on sale in the near future. e. An announcement by the Surgeon General that the product contributes to premature death.death.
One of the determinants of real GDP is output per hour of labor. This statistic is called labor
a. force growth. b. productivity. c. force participation. d. force input.