The fact that movie star Tom Cruise's salary is much higher than the salary earned by a Nobel prize winning economics professor can be explained by the
a. existence of noncompeting labor markets
b. elimination of noncompeting labor markets
c. failure of the market to reward talent fairly
d. fact that wage rates cannot reflect the influence of education in labor markets
e. willingness of some people to accept a lower wage rate in order to do what they like most to do
A
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After firm A acquired firm B, it raised the prices for the goods produced by both firms. This can increase profits if those goods are
a. Substitutes b. Complements c. Not related d. None of the above
The primary source of revenue for local governments is the property tax
a. True b. False
The flatter the demand curve that passes through a given point, the more inelastic the demand
a. True b. False Indicate whether the statement is true or false
Use the following figure to answer the next question.
If box E represents government, box C businesses, box D the resource market, and box B the product market, then government purchases of computers, office supplies, and military hardware would be illustrated by arrows
A. 7 and 8. B. 5 and 6. C. 9 and 10. D. 10 and 11.