Category: Economics

➤ How did the Bracero Program affect wages?
The Bracero Program (1942–1964) brought temporary Mexican labor and often depressed farm wages. Growers relied on guest labor to fill harvests cheaply. When the program ended, growers still used migrant recruitment and short-term hires, so wage recovery remained slow without stronger union influence or legal reforms.

➤ Why does the Fed prefer the PCE price index over the CPI when setting policy?
The PCE index covers a broader set of goods and services, uses chain-weighted expenditure shares, and better reflects substitution across items. It weights medical and business-to-business prices differently and aligns with the national accounts. Those features make PCE a more comprehensive and consistent gauge for assessing inflation trends and policy choices.

Explain why P > MR for a price searcher.
Illustrate the profit-maximizing solution of a firm in imperfectly competitive markets.

In the 1990’s, the GDP per capita in Philippines was more than twice the GDP per capita in Indonesia.Group of answer choicesTrueFalse
True
False

What is the most economically approved method of pharmaceutical disposal?sewage wastewaterdirect ocean depositionincinerationlandfilts

➤ How are ATC, AFC, and AVC related?
Average total cost (ATC) equals average fixed cost (AFC) plus average variable cost (AVC): ATC = AFC + AVC. AFC is fixed cost per unit and AVC is variable cost per unit. This identity comes from splitting total cost into fixed and variable parts and then dividing each by output.