If wages do not fall when there is an excess supply of labor, then ________.
A. there is a speculative bubble in the labor market
B. the economy cannot be in a slump
C. Say's Law holds
D. wages are "sticky downwards"
Answer: D
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Disposable income is defined as
A) national income - transfers + taxes. B) national income + transfers + taxes. C) national income + transfers - taxes. D) national income - transfers - taxes.
According to the factor price equalization theorem, if country B is labor abundant, then if country B initiates trade with country A
A) wages and rents should fall in A. B) rents and rents should rise in A. C) wages should rise and rents should fall in A. D) wages should fall and rents should rise in A.
In economics, investment always refers to
A. the creation of capital. B. an increase in per capita output. C. increasing the quantity of labor. D. the act of buying stocks or bonds.
The largest single transfer program at the federal level is
A. Social Security. B. unemployment compensation. C. farm subsidies. D. the agricultural support program.