Individuals with more experience tend to earn more than individuals with less experience. This is because
A. experience is a compensating differential.
B. experience on the job increases an individual's human capital.
C. the government requires that more-experienced workers be paid more than less-experienced workers.
D. it is only fair that a more-experienced worker be paid more than a less-experienced worker.
Answer: B
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Under a fixed exchange rate system, the exchange rate
a. is equal to one. b. fluctuates as the price of gold fluctuates. c. is fixed and interest rates must vary in response to balance of payment movements. d. can periodically change as economic conditions change.
The slope of the total production curve becomes:
A. steeper when marginal product decreases. B. flatter when marginal product decreases. C. negative when marginal product decreases. D. None of these is true.
The Fed's responsibilities include controlling the money supply, clearing checks, and supervising and regulating banks
a. True b. False Indicate whether the statement is true or false
Which of the following is generally accepted as a valid criticism of the production of useful goods and services?
A. government involvement B. the black market C. environmental pollution D. economic freedom