An argument against the use of tariffs to keep out the production of "cheap" foreign labor is that:
A) wage rates and labor productivity are directly related.
B) product prices and labor costs are unrelated.
C) there is no significant relationship between labor productivity and wage levels.
D) they don't work.
Ans: A) wage rates and labor productivity are directly related.
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Aggregate supply in the new classical aggregate supply
a. is vertical in the short-run. b. is horizontal in the short-run. c. is upward sloping in the short-run. d. None of the above
The basic purpose of financial markets is:
A. match people who want money to spend now with people who want to save their money for later. B. buy and sell different currencies in order to make a profit. C. sell commodities to firms as inputs. D. buy commodities from firms and the government to sell to the public.
The root of the savings and loan debacle was
A. the corruption of management. B. the low rates of interest paid to the depositors. C. long term (30-year) outstanding loans at extremely low interest rates. D. high risk short term loans.
You borrow $10,000 from a bank for one year at a nominal interest rate of 5%. The CPI over that year rises from 180 to 200. What is the real interest rate you are paying?
A) 15% B) 5% C) -1.1% D) -6.1%