Buying a house during a recession may be a good idea if your job seems secure because the Federal Reserve often lowers interest rates during a recession.
Indicate whether the statement is true or false
Ques. 2A number of economists have estimated the impact of unionization on workers' wages. Which of the following is one conclusion reached by these studies?
A) Holding constant the impact of other factors that affect wages, being in a union has no impact on a worker's wages.
B) Being in a union increases a worker's wages by about 10 percent, holding constant other factors that influence wages.
C) Union workers earn less than they would if they were not unionized. This is because of the impact of workers' strikes, during which union members do not receive wages.
D) The share of national income received by workers has increased significantly over time; unions have been responsible for about one-half of the increase in workers' share of national income from the end of World War II to 2000.
Ques. 3Which of the following is the smallest portion of the market basket of goods that makes up the CPI?
A) food and beverages B) apparel
C) transportation D) housing
Ques. 4Rising nominal GDP will increase the demand for money and short-term interest rates.
Indicate whether the statement is true or false
Ques. 5Refer to Table 19-16. Given the information above, what can we say has happened in the economy from 2015 to 2016?
A) The price level has remained constant.
B) The price level has fallen.
C) The price level has risen.
D) Not enough information is available to determine what has happened to prices.
Ques. 6Many economists are critical of proposals to pass comparable worth legislation. Which of the following is the best explanation for this criticism?
A) Proposals for comparable worth legislation assume that wages for low-paying women's jobs should include compensating differentials. Economists believe that compensating differentials should be part of the wages for all jobs held by women.
B) Proposals for comparable worth legislation call for increases in the wages of jobs held predominantly by women. Economists believe that this legislation should be used to increase the wages of all workers.
C) Many economists believe that allowing markets to determine wages, rather than the rules required by comparable worth legislation, results in more efficient outcomes.
D) Comparable worth legislation will only lead to efficient market outcomes if women in low-paying jobs suffer from cognitive dissonance.
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