Why do college graduates earn higher wages than non-graduates?
What will be an ideal response?
There are at least two explanations. First is the "learning effect" of college attendance: people who go to college earn more because they acquired valuable skills in college. In addition, the "signaling effect" suggests that individuals can indicate their high ability levels by going to college, a costly signal for low-ability people.
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To reduce the bias in the consumer price index, the Bureau of Labor Statistics
A) updates the market basket every 10 years, rather than every two years. B) updates the market basket every two years, rather than every 10 years. C) incorporates substitutions by consumers when prices of specific products fall rapidly. D) incorporates substitutions by consumers when prices of specific products rise rapidly.
Rich countries (measured by GDP per capita) tend to have __________ infant mortality rates, __________ life expectancies at birth, and __________ adult literacy rates than poor countries
a. higher; higher; higher b. lower; higher; higher c. lower; lower; higher d. lower; lower; lower e. lower; higher; lower
If people come to expect ongoing inflation, what will happen over time independent of the Fed's response?
a. The long-run aggregate supply curve will shift to the right. b. The aggregate supply curve will continue to shift upward. c. The aggregate demand curve will continue to shift to the right. d. The aggregate supply curve will continue to shift downward. e. The aggregate demand curve will continue to shift to the left.
Which of the following is a major reason for offshoring?
a. Global deregulation. b. Increased global demand for services. c. The gradual diminishing of global technological advances. d. All of the above are major reasons for offshoring.