What may be the complementary relationship, in terms of employment, between illegal fruit pickers and domestic-born truck drivers?
What will be an ideal response?
The complementary relationship between illegal fruit pickers and domestic-born truck drivers arises from the lower wages that illegal workers receive and the lower price of fruit that these lower wages generate. The law of demand indicates that lower prices are associated with higher quantities being demanded. The larger amounts of fruit demanded increases the need for transporting the fruits to the markets and thus increases the labor demand for truck drivers. In turn, truck drivers receive higher wages due to the increase in the demand for their labor.
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Refer to the scenario above. Which of the following will happen if she sells it for $200, and the total cost incurred by her in making the dress was $150?
A) GDP will increase by $50. B) GDP will increase by $180. C) Trade surplus will increase by $200. D) GDP will remain unchanged. Sarah takes care of her son instead of sending him to a day care which charges $12,000 annually.
If we compare the CPI to a perfect cost of living index, we find that they are
A) different because the CPI does not measure prices. B) the same thing. C) not the same because the CPI has a fixed reference base period. D) different because the CPI uses a fixed basket and has some measurement difficulties. E) different because the cost of living has nothing to do with prices.
The theory of land rent holds that
A. all plots of land are identical. B. all land yields a positive rent return. C. rent on any piece of land will equal the difference between the cost of producing the output on that land and the cost of producing it on marginal land. D. competition for superior plots of land will force the rent on those lands to a marginal return of zero.
What have been the changes or modifications in thinking about monetary rules in recent decades?
What will be an ideal response?