Explain how technological change can cause changes in wage inequality
What will be an ideal response?
If the technological progress favors skilled workers, the demand for skilled workers will rise and the demand for relatively unskilled workers will fall. This would cause the wage gap to increase.
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In deciding whether to study for an economics quiz or go to a movie, one is confronted by the idea(s) of
A. scarcity and opportunity costs. B. complementary economic goals. C. full production. D. money and real capital.
Deadweight losses are the only potential cost associated with tariffs, which is why they are preferred to quotas
Indicate whether the statement is true or false
If the required reserve ratio is one-third, currency in circulation is $300 billion, checkable deposits are $900 billion, and there is no excess reserve, then the M1 money multiplier is
A) 2.5. B) 2.8. C) 2.0. D) 0.67.
Since demanders of a good are concerned with the total price they have to pay for a good, a unit tax on the good will _____
a. shift the supply curve downward by the entire amount of the tax b. shift the supply curve upward by the entire amount of the tax c. shift the demand curve downward by the entire amount of the tax d. shift the demand curve upward by the entire amount of the tax