Explain how relatively high wages in the modern sector, as compared to the traditional sector, can lead to a coordination failure
What will be an ideal response?
See the section on the Big Push.
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Refer to Figure 13-4. What is the area that represents the total revenue made by the firm?
A) 0P0aQa B) 0P2cQa C) 0P1bQa D) 0P3dQa
In 1995, the Boskin commission identified which of the following problems with the computation of the CPI?
A) it does not account for the fact that consumers can substitute away from products as they get more expensive B) an increase in price could be the result of quality improvements rather than an increase in the cost of living C) it often does not reflect decreases in the cost of living that occur when new goods are introduced D) all of the above E) none of the above
The real return on bonds is
A) 0. B) r. C) R. D) i.
Whenever the price of Good A increases, the demand for Good B increases as well. Good A and B appear to be: a. complements. b. substitutes
c. inferior goods. d. normal goods.