Wages in the United States are higher than wages in China primarily because
a. worker productivity is higher in the United States.
b. the United States has more people and, therefore, a larger number of skilled workers.
c. in the United States, less capital is required per employee.
d. China has more natural resources that employees can work with.
a. worker productivity is higher in the United States.
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What type of protection does U.S. law grant the creator of a book, film, or piece of music?
A) A copyright, which grants exclusive rights to the creator for 20 years after the work is created. B) A patent, which grants the exclusive right to use the creation during the creator's lifetime and to his or her heirs for 70 years after the creator's death. C) A public franchise, which grants the exclusive right to use the creation during the creator's lifetime and to his or her heirs for 70 years after the creator's death. D) A copyright, which grants the exclusive right to use the creation during the creator's lifetime and to his or her heirs for 70 years after the creator's death.
A perfectly inelastic demand curve exhibits
A) zero responsiveness to changes in price. B) zero quantity demanded when there is a slight change in price. C) a change in quantity demanded that is proportional to the change in price. D) a change in quantity demanded that is always twenty percent of the change in price.
In which of the following games is it clearly the case that the cooperative outcome of the game is good for the two players and bad for society?
a. Two oil companies own adjacent oil fields over a common pool of oil, and each company decides whether to drill one well or two wells. b. Two airlines dominate air travel between City A and City B, and each airline decides whether to charge a "high" airfare or a "low" airfare on flights between those two cities. c. Two superpowers decide whether to build new weapons or to disarm. d. In all of the above cases, the cooperative outcome of the game is good for the two players and bad for society
This graph shows the marginal cost and marginal benefit associated with roadside litter clean up. Assume that the marginal benefit curve and marginal cost curve each have their usual slope.
A state initiative requiring towns to spend at least $20 per day on litter removal would be ________ because ________.
A. efficient; it solves the inefficiency created by the negative externality B. efficient; reducing litter is socially optimal C. inefficient; the marginal cost of litter removal would exceed the marginal benefit D. inefficient; $20 is insufficient to remove all of the litter