Employees with less experience tend to earn less than employees with more experience, because
A. experience is a compensating differential.
B. the government requires that more-experienced employees be paid more than less-experienced employees.
C. experience on the job increases an employee's human capital.
D. it is only fair that a more-experienced employee be paid more than a less-experienced employee.
Answer: C
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An increase in the price level causes government spending to:
A. increase. B. decrease. C. remain unaffected. D. increase in social welfare spending only.
Production costs for a given output will be minimized when the
a. budget line and the product indifference curve meet in the vertical axis. b. budget line crosses the product indifference curve. c. budget line begins to bend back on itself. d. product indifference curve and the budget line are tangent.
According to the Keynesian view of macroeconomics, what should be the role of the government as far as economic policy?
Select one: a. The government should keep the growth rate of the money supply stable. b. The government should maintain a fixed interest rate. c. The government should try to raise the AS curve. d. The government should try to stabilize the AD curve.
Suppose Blu-ray discs are sold in a perfectly competitive market. The current market price of Blu-ray discs is $15. If at the current level of production of compact discs you calculate the marginal cost to your company is also $15, and that AVC is rising, in the short run your company should:
A. produce more Blu-ray discs. B. produce fewer Blu-ray discs. C. continue producing the current level of Blu-ray discs. D. raise the price of its Blu-ray discs.