In 2008, expected inflation exceeded inflation. In 2009, inflation exceeded expected inflation
Therefore the real interest rate was ________ than the expected real interest rate in 2008 and the real interest rate was ________ than the expected real interest rate in 2009. A) less; less
B) less; greater
C) greater; less
D) greater; greater
C
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If carpentry positions A and B required identical skill levels, other things constant, which one of the following would most likely increase the wage rate of position A relative to position B?
a. The work place of position A is in the intense heat of the sun, whereas the work place of B is air-conditioned. b. Position A is a safe office job; position B requires the employee to operate a dangerous saw. c. Position A offers steady employment, whereas employees holding position B are often laid off. d. Position A offers more sick leave and more paid holidays.
The National Collegiate Athletic Association (NCAA) has long argued that nationally-prominent college athletes are compensated with an investment in human capital that far exceeds the monetary reward of playing professional sports. Examine this argument in light of your knowledge of human capital theory and the economic theory of labor markets
To combat inflation, Congress and the president should
A) decrease government spending. B) decrease taxes. C) raise interest rates. D) increase transfer payments.
Subsidies can be used to internalize positive externalities.
Answer the following statement true (T) or false (F)