Country A has a large pool of skilled workers earning $50 per hour and a small pool of unskilled workers earning $18 per hour. Country B has a small pool of skilled workers earning $60 per hour and a large pool of unskilled workers earning $8 per hour. Trade theory predicts that if A and B engage in international trade with each other,
a) real wages paid to skilled workers will fall in A
b) unskilled wages will become more unequal between A and B
c) real incomes will become more equal within B
d) the wages of unskilled workers in B will fall
e) wages to all workers in both countries will rise
c) real incomes will become more equal within B
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
According to Williamson and Lindert, during the antebellum period increasing wealth concentration occurred in the U.S
a. within regions. b. within age groups. c. among the native born. d. among the foreign born. e. All of the above.
Unemployment insurance pools risk across __________, and Social Security and Medicare pool risk across __________
A. time; the labor force. B. the labor force; all retired people. C. time; age. D. the labor force; time.
Firms in a high-wage nation such as the U.S. can compete effectively with imports from low-wage nations if
a. skill levels are identical in the nations b. the U.S. reduces tariffs on imports c. low-wage nations impose tariffs on U.S. made goods d. labor productivity is higher in the low-wage nation e. labor productivity is higher in the U.S.