In the absence of discrimination, as human capital investments increase, wages will generally
A) decrease.
B) increase.
C) not change.
D) increase or decrease.
B
You might also like to view...
In early 2009 the price of computer memory chips rose. In a demand and supply model, shifts in what curve(s) could have brought about the higher price?
What will be an ideal response?
The unemployment rate for younger workers is usually ________ the unemployment rate for older workers.
A. more predictable than B. higher than C. lower than D. approximately equal to
Status quo bias is the:
A. general resistance to change, often stemming from loss aversion. B. inefficiency that stems from constant change. C. inefficiency that stems from anchoring and adjustment. D. general enthusiasm for change, often stemming from regression to the mean.
Consider an economy in long-run equilibrium with an inflation rate (?) of 0.08 per year and a natural unemployment rate of 0.05. Suppose Okun's law holds and a one percentage point increase in the unemployment rate reduces real output by 2% of full-employment output. The expectations-augmented Phillips curve is given by ? = ?e - 2.5 (u - 0.05).Consider a two-year disinflation. In the first year, ? = 0.06 and ?e = 0.08. In the second year, ? = 0.04 and ?e = 0.05.(a)In the first year, what is the value of the unemployment rate?(b)In the first year, by what percentage does output fall short of full-employment output?(c)In the second year, what is the value of the unemployment rate?(d)In the second year, by what percentage does output fall short of full-employment
output?(e)What is the sacrifice ratio for this disinflation? What will be an ideal response?