If net external wealth increases for firms, it could ____ their ability to borrow and expand.
A) cut off completely
B) increase
C) decrease
D) have no effect
Ans: B) increase
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Jewelry workers and maintenance workers both get paid $4 an hour. Their supply curves are identical. The demand curve for jewelry workers is more elastic than the demand curve for maintenance workers. An increase in the minimum wage to $5.25 an hour will create
a. greater unemployment among jewelry workers than maintenance workers b. greater unemployment among maintenance workers than jewelry workers c. a shortage of jobs among maintenance workers d. a shortage of jobs among jewelry workers e. a wage differential between the two sets of workers
If the average propensity to consume is initially 0.85, the marginal propensity to consume is 0.75, and real disposable income increases by $1000, the value of saving
A. increases by $250. B. decreases by $250. C. increases by $150. D. decreases by $150.
The fact that the Phillips curve broke down during the 1970s means that aggregate demand has no effect on inflation.
Answer the following statement true (T) or false (F)
The demand for oil rig workers off the coast of Louisiana is the same as the demand for oil pipeline workers in North Dakota. The annual earnings of Louisiana oil rig workers is 22% higher than the earnings of North Dakota oil pipeline workers. A possible explanation for this is
A. Louisiana oil rig workers can work only part of the year, but North Dakota oil pipeline workers can work year round. B. being an oil rig worker in Louisiana must be more dangerous than being a pipeline worker in North Dakota. C. the amount of human capital needed to be a pipeline worker must be greater than the amount of human capital necessary to be an oil rig worker. D. Louisiana oil rig workers must face discrimination that is not encountered by North Dakota oil pipeline workers.