A labor market is divided into two segments. All workers have the same qualifications and find jobs in either segment equally attractive. Initially, both segments are in competitive equilibrium. If the development of employer prejudice then reduces the employment of minorities in one segment, there will be a
a. permanent drop in labor supply to the discriminating segment
b. permanent increase in labor supply to the nondiscriminating segment
c. temporary drop in labor supply to the discriminating segment
d. permanent drop in labor demand to the discriminating segment
e. temporary drop in labor demand to the nondiscriminating segment
C
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The average tax rate is calculated by dividing _____ by _____; the marginal tax rate is calculated by dividing _____ by _____.
Fill in the blank(s) with the appropriate word(s).
Every tax has two parts: a(n) ________ and a(n) ________.
A. base; incidence B. rate structure; excess burden C. base; rate structure D. incidence; rate
In order for money to be an effective medium of exchange, it is important to have it serve as a unit of account
Indicate whether the statement is true or false
Demand pull inflation can be started by
A) a decrease in net exports. B) an increase in government expenditure. C) a decrease in the money price of resources. D) an increase in the price of oil. E) a decrease in the quantity of money.