In the United States the distribution of income is relatively unequal, and output is relatively high, while in the former Soviet Union the distribution of income was more equal and output per worker was much lower. Give one possible explanation for this phenomenon
This problem illustrates the trade-off between efficiency and equality. Workers in the Soviet Union were guaranteed jobs and decent wages regardless of their work effort, and thus they had less incentive to reach higher levels of productivity. In the United States, generally speaking, workers receive greater rewards for greater effort, and thus output per workers tends to be higher.
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High Tech, Inc. produces plastic chairs that sell for $10 each. The following table provides information about how many plastic chairs can be produced per hour. Number of WorkersChairs Produced Per Hour00110218324428530For simplicity, assume that labor is the only input. How many workers will be hired if the hourly wage for workers is $70?
A. 3 B. 4 C. 1 D. 2
The maximum profit for a single-price monopoly is found when the firm produces the level of output so that
A) marginal revenue equals marginal cost. B) price equals marginal cost. C) it can charge the highest possible price. D) marginal revenue exceeds marginal cost by as much as possible. E) total revenue equals total cost.
The New Classical assumption of how quickly markets clear is actually most appropriate in the analysis of
A) the labor market. B) the aggregate good market. C) financial markets. D) the market for consumer durables.
A monopoly that emerges from economies of scale is called a natural monopoly
Indicate whether the statement is true or false