Answer the following statement(s) true (T) or false (F)
1. The difference between the earnings of a college graduate and an unskilled worker constitute the rent on human capital.
2. Positive externalities created by human capital provide one explanation of why firms do not move more capital to low-wage areas.
3. If most employers discriminate on the basis of race, then wage differentials between whites and blacks will certainly occur.
4. If there is discrimination, employers engage in it at a cost.
5. One reason that the extent of discrimination is difficult to measure is that workers sometimes choose to accept lower-paying jobs even though higher-paying jobs are available.
1. True
2. True
3. False
4. True
5. True
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Refer to the above figure. The top two arrows of the figure refer to the product markets. The bottom arrows refer to the factor markets. Which arrow represents the final consumer goods and services?
A) Arrow A B) Arrow B C) Arrow C D) Arrow D
The global economy enters a recession, thereby decreasing the level of U.S. exports. If the aggregate supply curve does not shift, then aggregate demand will ________, real GDP will ________, and the price level will ________
A) increase; increase; remain the same B) increase; remain the same; increase C) decrease; increase; increase D) decrease; decrease; decrease E) remain the same; increase; increase