A difference in wage rates that results from a difference in working conditions
a. is known as a compensating wage differential
b. is known as an equalizing differential
c. reflects a difference in marginal productivity
d. reflects job-market discrimination
e. will be eliminated if all labor markets are perfectly competitive
A
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Policymakers' use of stabilization policy to eliminate output gaps is more appropriate when an economy self corrects very ________ and when the output gap is very ________.
A. rapidly; small B. slowly; small C. rapidly; large D. slowly; large
Which of the following is not true of collective decision-making costs?
a. They impede collective action. b. They are the reason why unanimity rule is not the optimal decision-making rule. c. They imply that simple majority rule is the optimal decision-making rule. d. They increase the closer the decision rule gets to unanimity.
When the expenditure level is above the full employment level of GDP, a possible consequence is
a. falling prices. b. rising prices. c. falling disposable income. d. high levels of unemployment.
According to the text, which of the following is true?
A. The United States imports baseballs and exports corn. B. The United States imports auto parts and cars, but it doesn't export cars. C. The United States imports wheat, but not auto parts since it exports auto parts. D. The United States imports paper, but not computers since it exports computers.