The basic explanation for high real wages in the United States and other industrially advanced economies is that the:
A. Labor supply has increased more rapidly than labor demand in these nations
B. Labor demand has increased more rapidly than labor supply in these nations
C. Unemployment in these nations has remained relatively stable over the years
D. Inflation rate in these nations has been higher than the rate of increase in nominal wages
B. Labor demand has increased more rapidly than labor supply in these nations
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Marginal cost curves slope
A) upward because of increasing opportunity cost. B) upward because of decreasing opportunity cost. C) downward because of increasing opportunity cost. D) downward because of decreasing opportunity cost.
What key observation did the classical model attempt to explain?
a. the economy performs well in the short run, but not so well in the long run b. business cycles are the most important economic problem c. over the short run, the economy performs rather poorly d. markets do not clear without government intervention e. over the long run, the economy performs rather well
If an investor had a $25,000 long-term capital gain on a $100,000 investment from 1984 to 2010, her real rate of return was most likely
A. equal to the expected rate of inflation. B. equal to the nominal rate of inflation. C. zero. D. negative.
If the United States exports 6 million bushels of corn to Japan and thereby earns income with which it imports 3 million digital video recorders from Japan, the United States' terms of trade with Japan for corn and digital video recorders is 2:1.
a. true b. false