How does the demand for high-skilled workers compare to the demand for low-skilled workers? Why does this difference exist?
What will be an ideal response?
The demand for high-skilled workers exceeds the demand for low-skilled workers because the marginal revenue product of high-skilled workers exceeds the marginal revenue product of low-skilled workers.
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Excess reserves are the
A) amount of reserves held over what is desired. B) amount of reserves banks keep in their vaults. C) amount of reserves a bank holds at the Fed. D) amount of reserves the Fed requires banks to hold. E) same as the required reserves.
You went to a craft show and paid an exorbitant price for an embroidered shawl that the seller said was hand-embroidered and had been imported from India
Several months later, you find a similar shawl in another showroom at a much lower price and found out that the one you bought was not an imported one. This is an example of ________ in the market for embroidered shawls. A) asymmetric information B) positive externalities C) negative externalities D) the free-rider problem
The high price of agricultural land is basically
A) the cause of high food prices. B) the result of high food prices. C) unrelated to food prices because processing costs dominate food prices. D) unrelated to food prices because there is no opportunity cost of producing land.
If all education in the United States were provided by private, tuition-charging schools,
A) too much education would be consumed. B) too little education would be consumed. C) the efficient level of education would be provided. D) the government would provide both students and schools with vouchers. E) education would no longer have an external benefit.