Of the theories listed below, which do the best job of explaining why educated people are paid more than uneducated people?
a. human-capital and price-fixing
b. human-capital and signaling
c. wage-differential and signaling
d. wage-differential and compensating-differentials
b
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When will new firms enter a perfectly competitive market? When does entry stop?
What will be an ideal response?
Explain why a change in income tax rates causes the consumption schedule to change slope.
What will be an ideal response?
If the price level does not fall or only falls very slowly, then the result will be a prolonged period of
a. inflation whenever supply increases. b. production below potential GDP. c. production above potential GDP. d. rapid price increases when demand changes.
The British Crown was the only political, social, cultural and economic influence on the colonization of North America
Indicate whether the statement is true or false