The difference between the salaries paid to movie stars and to actors who play supporting roles is much greater today than it was in the 1930s and 1940s. What factor explains this increase in relative salaries over time?
A) There was no actors' union in the 1930s and 1940s. The rise of strong actors' unions has caused salaries of movies stars to be greater today than in previous years.
B) Technological advances in the entertainment industry increase the revenue that successful movies can earn. This has increased the movie studios' willingness to pay high salaries to movie stars.
C) The studio system that dominated the industry in the 1930s and 1940s no longer exists. The studio system allowed movie studios to sign actors to long-term contracts that kept salaries down.
D) Agents of movies stars are effective in obtaining large salaries for their clients today. Few movie stars had agents to negotiate for them in the 1930s and 1940s.
B
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Assume that the central bank purchases government securities in the open market. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and reserves account in the context of the Three-Sector-Model?
a. The real risk-free interest rate falls, and reserves account becomes more negative (or less positive). b. The real risk-free interest rate falls, and reserves account becomes more negative (or less positive). c. The real risk-free interest rate falls, and reserves account remain the same. d. The real risk-free interest rate rises, and reserves account remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Output Total Cost015125233340448558670
Refer to Table 5.5. The average variable cost of producing five units of output is:
A. $0. B. $8.60. C. $10. D. $11.60.