Answer the following statements true (T) or false (F)
1. In monopsony situations, a minimum wage might increase wage and employment levels.
2. Education is a form of human capital and it helps explain wage differentials.
3. Wage differentials are fully explained by differences in productivity and human capital among various workers.
4. There will be no principal-agent problem if a firm's owner (like a business consultant) does all the work of the firm.
1. TRUE
2. TRUE
3. FALSE
4. TRUE
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Refer to Table 12.1. Assuming the inflation rate forecast to be accurate, which nation would pay the highest nominal rate of return?
A) Brazil B) South Africa C) Australia D) the United States
An import tariff will have what effect on price and quanititly in the domestic market for the good?
a. increase; increase b increase; decrease c. decrease; increase d. decrease; decrease e. decrease; no change