A feedback from low real wages to low productivity could be caused by
A) an increase in the labor force caused by more immigration.
B) a reduction in the power of labor unions.
C) a reduction in the real minimum wage.
D) increased worker anxiety about job security.
E) all of the above.
E
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The Social Security program is ________ in that it redistributes income from ________
A) progressive; low earners to high earners B) regressive; low earners to high earners C) progressive; high earners to low earners D) regressive; high earners to low earners
If real GDP is $4 billion, the price level is 1.25, and the nominal money stock is $500 million, then velocity is
A) 0.1. B) 1. C) 10. D) 100.
In 2008, the share of debit cards and prepaid cards in total retail transactions was ________, the share of credit cards was ________, and the share of checks and cash was ________
A) 21, 31, 48 B) 48, 21, 31 C) 15, 32, 50 D) 41, 22, 37
Assume that the world price of Good A is $8 per unit while its domestic price is $6, and the marginal cost incurred by domestic producers for producing one unit of Good A is $5 . If the government imposes a tax of $3 per unit on domestic producers, which of the following situations will be observed?
a. The tax will increase the price of Good A in the domestic market. b. The tax will increase the world price of Good A. c. The tax will decrease the profit earned by domestic producers. d. The tax will decrease the price of Good A in the domestic market.