Brett is equally qualified for two different jobs -- video store clerk and coffee shop cashier. Brett is initially indifferent between the two jobs but when he finds out that they pay the same wage he prefers the job at the video store. This must mean that
a. the coffee shop pays a compensating wage differential.
b. the video store must be in a dangerous neighborhood.
c. the video job pays a compensating wage differential.
d. Brett decides he likes videos more than coffee.
e. the video job would require him to work harder.
C
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After an excise tax is imposed on a good or service,
a. the equilibrium price and quantity are unchanged b. firms must charge a higher price for any particular quantity c. firms must charge a lower price for any particular quantity d. the equilibrium price and quantity will both increase e. the equilibrium price and quantity will both decrease
The ______ budget constraint shows the tradeoff between present and future consumption.
a. utility-maximizing b. time-value of money c. intertemporal choice d. inflation
Collective bargaining is the process by which a labor union and a firm negotiate an employment contract
a. True b. False
Monopolies can misallocate resources by restricting output in an attempt to raise prices and profits.
Answer the following statement true (T) or false (F)