The U.S. economy has seen a faster increase in productivity since the mid-1990s as compared to the economies of many Western European countries. Which of the following explains this?
A) The United States has a higher rate of job mobility than do many Western European countries.
B) U.S. unions impose stricter work rules as compared to unions in Western European countries.
C) U.S. government regulations impose stricter work rules as compared to government regulations in Western Europe.
D) U.S. workers can obtain unemployment insurance for a longer period of time as compared to workers in most Western European countries.
A
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Answer the next question on the basis of the following consolidated balance sheet of the commercial banking system. Assume that the reserve requirement is 10%. All figures are in billions.Assets (billions of dollars)Liabilities & Net Worth (billions of dollars)Reserves$60Checkable deposits$600Securities140Stock shares260Loans260 Property400 Suppose the Fed wants to increase the money supply by $400 billion to drive down interest rates and stimulate the economy. Assuming that the money multiplier is operating to full effect, to accomplish the desired increase, the Fed could ________.
A. sell $40 billion of U.S. securities to the banks B. sell $20 billion of U.S. securities to the banks C. buy $20 billion of U.S. securities from the banks D. buy $40 billion of U.S. securities from the banks
The interest rate in the federal funds market:
a. is determined by the imposition of price controls imposed by the Fed. b. rises when the quantity of funds demanded by banks seeking additional reserves exceeds the quantity supplied by banks with excess reserves. c. will fall if the Fed sells bonds and, thereby, reduces the reserves available to banks. d. is an interest rate that is largely unaffected by the policies of the Fed.
Any pro-growth policy that increases investment requires
a. an eventual increase in GDP b. increased production of consumption goods c. decreased production of capital goods d. a sacrifice of current consumption spending e. reduced government spending
A corporation that operates in several countries, but produces all of its output in its domestic country, is called a(n)
a. sole proprietorship b. international partnership c. multinational corporation d. international corporation e. domestic corporation