The demand curve for high-skilled workers lies to the right of the demand curve for low-skilled workers because of the costs associated with obtaining skills
Indicate whether the statement is true or false
FALSE
You might also like to view...
The North American Free Trade Agreement signed in 1993 lowered tariffs among the United States, Canada, and Mexico. What would proponents of the treaty consider to be the likely benefits?
What will be an ideal response?
The view of poverty embraced does not have a direct bearing on what public policies ought to be pursued
Indicate whether the statement is true or false
Firms will continue to enter a competitive industry until: a. the supply curve is vertical
b. the market price falls below average variable cost. c. any economic profits have been competed away. d. all resources are fully employed.
Suppose the government's goal is to increase consumption in the year 2002 . Its two options are (1) an announced one-time $1 billion dollar tax cut for 2002 or (2) an announced permanent tax cut (2000 and thereafter) of $1 billion dollars starting in 2002. Which would more effectively achieve the government's goal?
a. the one-time tax rebate, if Friedman's permanent income hypothesis is correct b. the permanent tax cut, if Friedman's permanent income hypothesis is correct c. either option would do because each will increase consumption by the same amount d. the one-time tax rebate, if Duesenberry's relative income hypothesis is correct e. the permanent tax cut, if Duesenberry's relative income hypothesis is correct