Which of the following is a reason why the wage rate of high-skilled workers exceeds the wage rate of low-skilled workers?
A) The market for high-skilled workers is more competitive than the market for low-skilled labor.
B) The demand for high-skilled workers exceeds the demand for low-skilled workers.
C) The number of high-skilled workers exceeds the number of low-skilled workers.
D) Low-skilled workers often are in the process of acquiring more human capital.
B
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To compare the net public debt of various countries, the debt has to be compared to
A) the country's real GDP. B) the country's current budget deficit or surplus. C) the country's trade deficit. D) the country's national defense expenditure.
Which of the following is an example of a normative question?
A) What fraction of an income tax cut will be spent on imported goods? B) How will an increase in the inheritance tax affect tax revenues? C) How will an increase in unemployment benefits affect the unemployment rate? D) Should Florida implement a state income tax to reduce its deficit?