Compensating differences in wages:
A. compensate workers for differences in their human capital.
B. are wage differences that compensate for differences in the desirability of jobs.
C. describe the tendency for the wages of all occupations to adjust to the median level.
D. do not exist if jobs have different nonmonetary characteristics.
Answer: B
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A reduction in government spending causes the equilibrium level of aggregate output to ________ at any given interest rate and shifts the ________ curve to the ________, everything else held constant
A) rise; LM; right B) fall; IS; left C) fall; LM; left D) rise; IS; right
History has shown that over the long run, labor-saving technology has actually not reduced employment
a. True b. False Indicate whether the statement is true or false
Government spending is an injection in the sense that it
A. increases the amount of total spending. B. increases the size of the federal deficit. C. decreases the amount of household saving. D. decreases the amount of taxes paid.
The first term in an NPV calculation is usually
A) positive, because firms consider only positive returns. B) positive, because interest charges do not accrue until the second period. C) zero, because interest charges do not accrue until the second period. D) negative, because funds for the project have to be borrowed up front before it is begun. E) negative, because the cost of the project is immediate, but revenue streams from the project come later.