When the Social Security system begins running a deficit, the bonds in the trust fund will be drawn down. The funds to redeem these bonds will have to come from
a. higher taxes, spending reductions in other programs, or additional government borrowing.
b. the surplus funds deposited in governmental banking accounts.
c. equity capital being liquidated.
d. the sale of private equities and securities that the government has been purchasing with the funds.
A
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Which of the following might cause an upward shift of the modern Phillips curve?
A) an increase in oil prices B) an increase in the price of imports C) wage agreements that include compensation for inflation D) all of the above E) none of the above
Legislators argue that a minimum wage law is instituted to help poor people. Economists can attack the minimum wage law on two fronts. First, some argue that government should not help the poor
Second, some argue that minimum wage laws actually hurt the poor because it creates unemployment. Which argument is normative and which is positive?
When the economy turns down and the incomes of many people decrease, vacationers are more likely to take car trips than to fly. Which of the following provides one possible explanation for this phenomenon?
A. Air travel and travel by car are complementary goods. B. Air travel and travel by car are both normal goods. C. Air travel is a normal good and travel by car is an inferior good. D. Air travel is an inferior good and travel by car is a normal good.
Consider the model: log(wage) = 
+ 
female + 
exper +
class="Wirisformula" data-wiris-created="true" src="@@PLUGINFILE@@/ppg__cognero__Ch_07_Multiple_Regression_Analysis_with_Qualitative_Information__media__5dc5a813-d9ab-40f1-aeec-01f10346ab72.PNG" style="vertical-align:middle;" />female * exper + u, where exper is the years of work experience, and female is a dummy variable (1 if the person is female, and 0 otherwise). Which of the following measures the difference in the return of experience between men and women?
A. 
B. 
+ 
C. 
+ 
+ 
D. 
+ 