The fact that some people will work hard to earn a lot of money while others will be content with much less income indicates that
a. some people can be paid less for doing hard work while others have to be paid a premium for doing a similar task.
b. economics ranks one set of worker preferences as more desirable than another.
c. skill levels of laborers are a minor consideration in wage rate determination.
d. worker preferences are an important source of earning differentials.
d. worker preferences are an important source of earning differentials.
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If the GDP deflator rises from one year to the next, we know that
A) economic growth has occurred. B) everyone in the economy is at least slightly worse off. C) real GDP has declined. D) the amount of double-counting in GDP has increased. E) the average money price of the goods included in GDP has risen.
A worldwide system of fixed exchange rates was organized and maintained under the International Monetary Fund
A) in the three decades before World War I. B) in the years between the world wars. C) from the end of World War II until the early 1970s. D) from the early 1960s to the late 1980s.
Research in history and economic history shows that before 1880,
(a) there was some government intervention in the private sector of the American economy. (b) there was substantial federal regulation of private business organization but little influence in the economy otherwise. (c) the regulation and participation that existed were usually of a background nature and were not concerned with the details of day-to-day private business. (d) laissez faire was the rule so far as the federal government was concerned.
Answer the following statement(s) true (T) or false (F)
1. The Phillips curve demonstrates a positive relationship between inflation and unemployment rates. 2. Lower real wages make it more profitable for companies to hire additional employees. 3. The relationship demonstrated by the Phillips curve tends to disappear in the long run. 4. As aggregate demand in an economy increases, it moves up and to the left on its Phillips curve. 5. The AD/AS model and the Phillips curve show two completely different and unrelated economic events.