If product prices increase slower than nominal wages increase, then the real value of wages decreases.
Answer the following statement true (T) or false (F)
False
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Refer to the above figure. Suppose that the economy starts at AD1. If the government reduces taxes, then the economy goes to AD2, but then falls back to AD1. This is an example of
A) laissez-faire. B) partial crowding-out effect. C) the free rider problem. D) complete crowding-out effect.
One big difference between tariffs and quotas is that tariffs
a. raise the price of a good while quotas lower it b. generate tax revenues while quotas do not c. stimulate international trade while quotas inhibit it d. hurt domestic producers while quotas help them e. generate the same outcome as free trade while quotas do not
Among the criteria used for identifying priority contaminants is that
a. the pollutant must occur in a private water system b. thecontaminant might have a negative effect on the ecology c. the pollutant must be a microorganism d. the contaminant may have an adverse effect on human health e. none of the above
Newspaper accounts of the U.S. labor market often point out that many people are working more hours than their parents did. What might explain this phenomenon?
A) the substitution effect B) the endowment effect C) bounded rationality D) the income effect