The long-run aggregate supply curve is the relationship between the quantity of real GDP supplied and ________ when ________
A) the price level; real GDP equals potential GDP
B) real GDP demanded; the wage rate is constant
C) the price level; real GDP equals nominal GDP
D) real GDP demanded; the price level does not change
A
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Assume that Bulgaria has a comparative advantage in producing sandals and Finland imports sandals from Bulgaria. We can conclude that
A) Labor costs are higher for sandal producers in Finland than in Bulgaria. B) Bulgaria also has an absolute advantage in producing sandals relative to Finland. C) Bulgaria has a lower opportunity cost of producing sandals relative to Finland. D) Finland has an absolute disadvantage in producing sandals relative to Bulgaria.
Which of the following is a reason why it is difficult to estimate the extent of economic discrimination in the labor market?
A) Differences in wages can be attributed to many other factors as well, such as differences in productivity and preferences. B) Ultimately, employers who discriminate cannot remain profitable. C) Employers who discriminate pay an economic penalty. D) Employers who discriminate are likely to do so in overt ways such as awarding some workers with benefits-in-kind.
If the labor market is competitive, a monopoly output market will result in
A) a lower wage than that of a competitive output market. B) a higher wage than that of a competitive output market. C) less labor hired than in a competitive output market. D) more labor hired than in a competitive output market.
The lack of progress in reducing the poverty rate since the early 1970s is most closely related with which of the following factors?
a. increasing income inequality b. a reduction in the poverty line c. rapid economic growth d. a reduction in international trade