Which of the following observations concerning labor cost patterns over the last century is true?
A. Average real wages started rising after 1973.
B. Hourly compensation rates have fallen dramatically.
C. Compensation growth slowed markedly.
D. Average hours worked per week have increased by almost 50 percent.
Answer: C
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Which is the most likely reason why more young people from low-income regions are more likely to join the military, compared to those in high income regions?
A) They are more easily pressured by recruitment officers. B) Their opportunity costs are relatively lower. C) They are more patriotic than their richer counterparts. D) They are, to put it bluntly, more foolish than their richer counterparts.
In a principal-agent relationship, moral hazard might occur if
A) the agent can hide his actions from the principal. B) the principal and agent are married. C) payoffs are based on a state of nature. D) the principal can hide her actions from the agent.
According to the Taylor rule, when real GDP is at its potential and inflation is at its target rate of 2 percent, the Fed should:
A. carefully lower the federal funds rate in an attempt to stimulate noninflationary real GDP growth. B. raise the federal funds rate in an attempt to eliminate the remaining inflation. C. lower the federal funds rate to lower borrowing costs for the federal government. D. keep the federal funds rate at 4 percent.
Refer to the data provided in Table 17.3 below to answer the following question(s). The table shows the relationship between income and utility for Terri.Table 17.3 IncomeTotal Utility $00$20,00010$40,00025$60,00045$80,00075Refer to Table 17.3. Suppose Terri has a 25% chance of becoming disabled in any given year. If she does become disabled, she will earn $0. If Terri does not become disabled, she will earn her usual salary of $80,000. Terri has the opportunity to purchase disability insurance for $20,000 which will pay her her full salary in the event she becomes disabled. Would Terri purchase such a policy?
A. yes B. no C. maybe D. indeterminate from the given information