If a worker is indifferent between a job with a wage of $12 per hour and a job with a wage of $15 per hour, then the
a. higher-paying job enjoys a compensating wage differential of $3 per hour
b. higher-paying job enjoys a compensating wage differential of $15 per hour
c. lower-paying job is intrinsically more attractive than the higher-paying job
d. lower-paying job is just as attractive as the higher-paying job
e. worker's preferences are not rational
A
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It is impossible to incorporate the value of human life into implicit and explicit cost-benefit analyses
Indicate whether the statement is true or false
The new Keynesian economists argue that prices are relatively rigid because of
A) menu costs. B) overlapping staggered contracts. C) efficiency wages. D) All of the above.
Which of the following is true?
a. Decision making should never be centralized b. When decentralizing decision making, figure out a way to transfer information to the decision maker c. When decentralizing decision making, strengthen incentive compensation schemes d. When decentralizing decision making, weaken incentive compensation schemes
Which of the following was true of the actions of the Federal Reserve in response to the recession of 2008?
a. The Fed shifted toward a highly restrictive monetary policy in 2008, which was a major cause of the recession. b. The Fed continued to focus only on price stability and therefore it expanded the money supply at a slow and steady rate throughout the recession. c. The Fed introduced several new procedures for the conduct of monetary policy and it increased the monetary base rapidly as the recession worsened. d. The Fed continued to purchase and sell only U.S. Treasury bonds when conducting open market operations to control the money supply.