The aggregate supply curve is upward sloping because
A. higher product prices lag behind increases in resource costs.
B. higher prices eliminate much of the purchasing power of higher profits and wages.
C. higher prices result in greater nominal dollar purchases by consumers.
D. production costs tend to rise as an economy produces greater output, and higher prices are necessary to cover the costs.
D. production costs tend to rise as an economy produces greater output, and higher prices are necessary to cover the costs.
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Sarah is a high school graduate and James is a college graduate. Which of the following statements is true?
A) Sara is likely to have more human capital than James. B) James is likely to have more human capital than Sara. C) Both Sara and James are likely to earn the same wage in the labor market. D) Both Sara and James are likely to have the same amount of human capital.
In the figure above, curve B is the ________ curve
A) average fixed cost B) average variable cost C) average total cost D) marginal cost
When $1 million is deposited at a bank, the required reserve ratio is 20 percent, and the bank chooses not to make any loans but to hold excess reserves instead, then, in the bank's final balance sheet
A) the assets at the bank increase by $1 million. B) the liabilities of the bank decrease by $1 million. C) reserves increase by $200,000. D) liabilities increase by $200,000.
Wage discrimination occurs when people are paid different salaries based upon: a. education
b. ethnicity. c. willingness to work. d. talent.