Economic theory suggests that college graduates receive higher wages than those with only a high school education because
a. college graduates are more productive.
b. college graduates must be paid higher wages because their educational costs were higher.
c. college graduates have formed stronger unions.
d. the supply of high school graduates is small relative to the demand for their labor.
A
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The table above gives the labor market for a small foreign economy. Equilibrium in the labor market occurs at a real wage rate of
A) $7.15 per hour. B) $8.50 per hour. C) $9.00 per hour. D) $7.65 per hour. E) $8.00 per hour.
"Compensating wage differentials" arise because:
a. workers possess different skills. b. workers prefer the characteristics of some to those of others. c. firms pay higher wages for workers with higher marginal productivities. d. firms discriminate in hiring.
An example of a public good that is difficult to make excludable is:
A. toll roads. B. city buses. C. state universities. D. police protection.
Assume that the expectation of a recession next year causes business investments and household consumption to fall, as well as the financing to support it. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the GDP Price Index and the monetary base in the context of the Three-Sector-Model? a. The GDP Price Index rises and monetary base
falls. b. The GDP Price Index and monetary base fall. c. The GDP Price Index falls and monetary base rises. d. The GDP Price Index and monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.