Which of the following statements is correct?
a. Differences in human capital may explain differences in wages between blacks and whites.
b. Racial discrimination is the strongest explanation for differences in wages between blacks and whites.
c. Gender discrimination is the strongest explanation for differences in wages between blacks and whites.
d. None of the above statements is correct.
a
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Consider two individuals, Artie and Deena, who produce wind chimes and sun dials. Artie's and Deena's weekly productivity are shown in Table 3.4. Which of the following is TRUE?
A) Artie has a comparative advantage in producing wind chimes but not sun dials. B) Artie has a comparative advantage in producing sun dials but not wind chimes. C) Artie has a comparative advantage in producing both goods. D) Artie does not have a comparative advantage in producing either good.
In the Keynesian income-expenditure graph, total savings at each level of national income is indicated by
a. the vertical distance between the consumption function and the 45-degree line. b. the slope of the consumption function. c. the horizontal distance between the consumption function and the 45-degree line. d. the slope of the saving function.
A change in expectations about future prices by consumers, who now believe that prices will be higher than they earlier thought, will eventually result in a(n)
a. increase in the interest rate b. decrease in the interest rate c. change in the interest rate but the direction of the change depends upon how much expectations changed d. change in the market rate of interest but the equilibrium rate of interest remains unchanged e. change in the equilibrium rate of interest but the market rate of interest remains unchanged
The invisible hand principle indicates that competitive markets can help promote the efficient use of resources
a. only if buyers and sellers really care, personally, about economic efficiency. b. even when each market participant cares only about their own self interest rather than about the overall efficiency of resource use. c. even if business firms fail to produce goods efficiently. d. if, and only if, businesses recognize their social obligation to keep costs low and use resources wisely.