Factory workers who work the day shift earn less per hour than similarly-skilled factory workers who work the night shift. The difference in pay is attributed to
a. the marginal product of labor.
b. the marginal product of capital.
c. diminishing marginal returns.
d. a compensating differential.
d
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Adverse selection is a situation in which one party to an economic transaction has less information than the other party
Indicate whether the statement is true or false
As the Fed responded to the financial crisis that followed the collapse of the housing market, certain banks were deemed too:
A. large to fail, and were consequently purchased by the government. B. small to fail, as they were easy to save. C. large to stay afloat, as they would be too costly to save. D. large to fail, as their failure would carry the risk of causing a domino effect in the highly integrated financial system.
A country with an undervalued currency
a. will have a balance of payments deficit. b. will accumulate reserves of foreign currencies. c. will suffer losses of foreign reserves. d. must intervene in the foreign exchange market to buy its own currency.
Most home mortgages are good examples of:
A. consols. B. coupon bonds. C. zero-coupon bonds. D. fixed-payment loans.