Explain why it might be necessary in some circumstances for firms to pay workers wages that are higher than the legislated minimum wage even for jobs requiring low skills
What will be an ideal response?
The reason is that in some labor markets the available labor supply may be relatively tight due to demographics or an otherwise booming economy or it may be that the demand for low-skilled workers is high relative to the available labor supply.
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Which of the following is not an advantage to an insurance company of insuring a large group of people for health insurance?
A) When all group members pay the premium, the problem of adverse selection is reduced. B) The characteristics of a large group are likely to reflect those of the entire population. C) When all group members pay the premium, the problem of moral hazard is reduced. D) It is easier to accurately predict the number of claims for a group than for an individual.
The Consumer Price Index is based on the price level of a basket of goods and services that represents the purchases of an average consumer
a. True b. False Indicate whether the statement is true or false
China's State Council has encouraged more spending to "improve transportation links and other infrastructure...." It will also "step up its spending on vocational training and other educational programs for adults." www.nytimes
com, Keith Bradsher, October 19, 2008 Suppose that capital goods are on the vertical axis while consumption goods are on the horizontal axis of China's PPF. As a result of enacting the policies, China's PPF will A) shift outward. B) shift inward. C) rotate outward. D) become flatter.
The United States is a mixed economy because there is a ______________________ sector and a _______________ sector.
Fill in the blank(s) with the appropriate word(s).