An increase in the demand for workers producing computers for export versus producing agricultural products that can be imported more cheaply from abroad is an example of how increasing wage inequality can result from:
A. the diminishing marginal product of labor.
B. increasing reservation prices.
C. the diminishing marginal product of capital.
D. globalization.
Answer: D
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If the intersection of the IS curve with the horizontal axis comes at a level of output below the natural level of output, the Fed
A) can easily bring the economy back to the full-employment level of output. B) loses control of the economy. C) must use contractionary model policy to correct economic problem. D) must decrease money supply and ignore interest rates.
If a nonrenewable resource is used more in the current period, the return on saving the resource for future falls
a. True b. False Indicate whether the statement is true or false
As a supplier, you would probably supply _________________________labor at a higher price than a lower price.
Fill in the blank(s) with the appropriate word(s).
The store of value characteristic of money refers to the fact that:
A. people save most of their money. B. money is not valuable unless it is stored. C. money allows people to shift purchasing power into the future. D. money is the only way people have to store value.