Marcia is a white 23-year-old female, and Joan is a black 23-year-old female. Both Marcia and Joan were economics majors, and they graduated from the same college in the same year with the same GPA. Marcia and Joan both got identical jobs at a brokerage firm after graduating from college. They both work equally hard. Marcia earns $38,000 a year, and Joan earns $30,000 a year. Select the best
explanation for this wage difference.
a. Marcia has less human capital than Joan.
b. Marcia receives a compensating wage differential that Joan does not.
c. Joan has been discriminated against because she is black.
d. Marcia has been discriminated against because she is white.
c
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A) luxury. B) necessity. C) close substitute for chicken. D) none of the above.
A subsidy to carrot farmers will
A) increase the quantity of carrots demanded. B) decrease the quantity of carrots supplied. C) increase the supply of carrots. D) leave both the supply and demand of carrots unchanged.
If your supplier becomes more profitable
a. you become more profitable by acquiring it b. you become less profitable by acquiring it c. acquiring it will make you more profitable if there are no synergies to exploit d. unless there are no synergies to exploit through acquisition, acquiring it will not make you more profitable
You put money into an account and earn a real interest rate of 6 percent. Inflation is 3 percent, and your marginal tax rate is 20 percent. What is your after-tax real rate of interest?
a. 4.8 percent b. 5.4 percent c. 7.2 percent d. 4.2 percent.