What two factors are the keys to determining labor productivity?
A) the business cycle and the growth rate of real GDP
B) the growth rate of real GDP and the interest rate
C) the level of technology and the quantity of capital per hour worked
D) the average level of education of the workforce and the price level
Answer: C
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The MPC can be defined as the:
A. Change in consumption divided by the change in income B. Change in income divided by the change in consumption C. Ratio of income to saving D. Ratio of saving to consumption
Answer the following statements true (T) or false (F)
1. The Temporary Assistance for Needy Families (TANF) expanded welfare benefits and has no limit on the number of years for receiving welfare benefits. 2. Labor market discrimination occurs when equivalent labor resources are paid or treated differently even though their productive contributions are equal. 3. In the taste-for-discrimination model, a prejudiced employer who prefers white workers and who has a discrimination coefficient of $3/hour would still hire African-Americans if the market wage rate is $22/hour for white workers and $20/hour for African-Americans. 4. In the taste-for-discrimination model, an increase in the prejudice of employers will decrease the demand for African-American workers; lower the African-American wage rate and the ratio of African-American to white wages. 5. Statistical discrimination occurs when employers base hiring decisions on individual workers' previous employment records and statistics. 6. The crowding model of occupational segregation shows how white males earn higher incomes at the expense of women and minorities who are restricted to a limited number of occupations.