What are compensating differentials?
What will be an ideal response?
Compensating differentials are differences in wages that result from differences in working conditions. Risky jobs usually pay higher wages; highly desirable jobs usually pay lower wages (ceteris paribus).
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Subtracting borrowed reserves from the monetary base obtains
A) reserves. B) high-powered money. C) the nonborrowed monetary base. D) the borrowed monetary base.
Suppose that there are two firms, each generating three tons of SO2. Suppose also that the government has set a target abatement level of two tons. Under a policy of uniform abatement with permits, the firm with the lower marginal abatement cost:
A. will abate exactly the same amount of SO2 as the firm with the higher marginal abatement cost. B. will abate less SO2 than the firm with the higher marginal abatement cost. C. will abate more SO2 than the firm with the higher marginal abatement cost. D. will sell its pollution permit to the firm with the higher marginal abatement cost.
One source of the supply of dollars in the foreign exchange market is
A) U.S. companies importing foreign goods. B) foreign citizens buying U.S. goods. C) SDRs being converted into dollars. D) the U.S. Mint buying dollars from the Bank of England.
Which of the following is an example escape clause relief?
A) A tariff is granted because foreign firms are selling below cost. B) A temporary tariff is granted to allow for adjustment of the domestic industry. C) A tariff is granted to an industry because foreign firms are subsidized by their governments. D) A tariff is granted to an industry because another nation persistently uses unfair trade practices.