Wages of doctors tend to be higher than wages of bankers. Which of the following is a compensating differential explaining the difference in wages?
a. Doctors have the stress of being responsible for other peoples' lives while bankers do not.
b. Doctors are on call to work nights and weekends, while bankers work traditional business hours.
c. Doctors must pay for malpractice insurance in case they are sued for a mistake on the job.
d. All of the above are compensating differentials.
d
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If a candidate for political office was espousing a "pro-growth" agenda and was focused on decreasing government regulations, this would have its greatest impact on growth through which source?
A. An increase in the productivity of workers B. An increase in economic freedom C. An increase in the number of workers D. None of these
Keynesians believe that
A) the link between money and aggregate demand is very strong. B) interest rates will immediately respond to a change in investments. C) fluctuations in the price level are a source of stability. D) the interest rate will not necessarily respond to a drop in investments.
Which of the following statements best describes excess demand, or shortage?
a. The area between the supply and demand curves above the equilibrium point is called excess supply, or surplus. b. The area between the supply and demand curves below the equilibrium point is called excess supply, or surplus. c. The area between the supply and demand curves to the right of the equilibrium point is called excess supply, or surplus. d. The area between the supply and demand curves to the left of the equilibrium point is called excess supply, or surplus.
In the long run, which of the following will occur if the U.S. federal government eliminates restrictions on migration of Mexican workers to the United States?
a. The United States' total K/L ratio will rise. b. Mexico's total K/L ratio will fall. c. Wages of American workers who compete with Mexican workers for jobs will rise. d. The returns to U.S. owners of capital will remain unchanged.