John is an Asian 23-year-old male, and Ken is an Asian 43-year-old male. Both John and Ken are economics majors, and they graduated from the same college with the same GPA — John in 2006 and Ken in 1986 . John and Ken are both financial advisers at the same brokerage firm. John earns $52,000 a year, and Ken earns $88,000 a year. Select the best explanation for this wage difference
a. John has more human capital than Ken.
b. John has less human capital than Ken.
c. John has been discriminated against because he is young.
d. Ken has been discriminated against because he is old.
b
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Recent evidence regarding the exchange-rate pass-through effect in the U.S. reflects a declining trend. How can this be explained?
What will be an ideal response?
In the simple Keynesian model, why does actual investment spending have to equal saving in the absence of the government and foreign sectors? Is this true only for the equilibrium? Explain
What will be an ideal response?
If businesses expect the economic activity to expand
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Information asymmetry is a problem when:
A. a buyer and seller have aligned incentives. B. a buyer and seller have opposing incentives. C. a market is highly efficient. D. a market is highly inefficient.