All Pittsburgh police officers must go through the same training program, but police officers assigned to the narcotics squad earn 10% more than police officers assigned to guard the city courthouse. This 10% difference in pay is an example of a
A. human capital differential.
B. transfer payment.
C. compensating differential.
D. utility differential.
Answer: C
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Rent ceilings
A) increase search activity. B) result in surpluses. C) create efficiency. D) benefit producers. E) have no effect if they are set below the equilibrium rent.
Interest rates are determined by the supply and demand for
A) money. B) capital goods. C) loanable funds. D) foreign currencies. E) stocks.
Above the equilibrium nominal interest rate, there is a surplus of money
a. True b. False Indicate whether the statement is true or false
If the misery index is 12 and the inflation rate is 4 percent, we can conclude
A. The AD curve must be shifting to the right. B. The inflation rate will quickly rise by 8 percent. C. Monetary policy is not succeeding at keeping inflation low. D. The unemployment rate must be 8 percent.