In the same city, one job currently pays $6 more per hour than another job. The two jobs have equivalent training requirements, but labor is not migrating toward the higher-paying occupation. Both markets are perfectly competitive. Which of the following conclusions is correct?
a. The lower-paying occupation has less attractive nonmonetary characteristics.
b. There are barriers to entry into the higher-paying occupation.
c. The higher-paying occupation has a dominant labor union.
d. There are barriers to entry into the lower-paying occupation.
e. The higher-paying occupation has less attractive nonmonetary characteristics.
E
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New Keynesian economists believe that
a. movements in unemployment can be explained by voluntary movements in and out of the labor market.. b. everyone who is not working is involuntary unemployed. c. labor markets clear in the long-run. d. the new classical model has merit, but recessions cannot be adequately explained in a model of with perfectly flexible prices and wages.
For profit-maximizing monopolies, explain why the boundaries on the Lerner Index are 0 and 1
What will be an ideal response?
Which of the following would be an example of a public good?
a. A candy bar. b. A painting by Monet. c. A taxi cab. d. A sunset. e. The beach.
When an individual deposits currency into a checking account:
A. bank reserves decrease, which reduces the amount banks can lend and reduces the growth of the money supply. B. bank liabilities increase, which reduces the amount banks can lend and reduces the growth of the money supply. C. bank reserves are unchanged. D. bank reserves increase, which allows banks to lend more and increases the money supply.