Which of these is true of the expected price level in a labor market?
a. It is the equilibrium price level in the short run
b. It determines the actual price level in the short run.
c. It determines the actual price level in the long run.
d. It allows firms and resource owners to make long-term wage agreements.
e. The difference between the expected and actual price levels is equal to the actual inflation rate.
d
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According to your textbook authors, what explains the dramatic decline in the U.S. poverty rate since the 1960s?
A) The power of labor unions B) Steady economic growth C) Increases in the minimum wage D) The growth of in-kind government transfers E) The growth of government welfare assistance paid in money
Assuming that we can properly measure ability to pay, how do we use the principle of vertical equity to determine how much someone with greater ability to pay should pay in taxes?
a. By integrating it with the principle of horizontal equity. b. Through reference to the benefit principle. c. By looking at elasticities of demand for various income quintiles for the good in question. d. We cannot use the principle of vertical equity to answer this question.