Doctors demand large salaries in part because
A. they are forbidden by U.S. law from receiving economic rent.
B. most doctors have backward-bending labor supply curves.
C. they participate in the secondary labor market.
D. they have made significant investments in human capital.
Answer: D
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Retirement savings accounts, such as IRAs, help increase economic growth because
A) they encourage international trade. B) government invests them. C) they keep the interest rates high. D) people have an incentive to work harder and longer hours to save for the future. E) savings finances investment.
If price and quantity are not at their equilibrium positions, then
A. government must intervene. B. a move to another position will help everyone. C. it is possible to reallocate so that some people are better off without harming others. D. a move to another position will not hurt anyone.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:
A. P4 and Y1. B. P4 and Y2. C. P5 and Y1. D. P5 and Y2.
A fixed exchange rate system encourages speculators to attack weaker currencies.
Answer the following statement true (T) or false (F)