At any wage rate, the quantity of welders willing to work is less than the quantity of tomato pickers. Why?
What will be an ideal response?
For the welder the cost of acquiring his or her skill is much higher than the cost incurred by the tomato picker. The cost of learning how to pick fruits and vegetables is so low that the supply of individuals who can do that activity is quite large. Welders must learn their trade on the job and/or through vocational training, which raises the costs of learning this skill and decreases the supply of welders.
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The federal personal income tax
A. is actually less progressive than official tax schedules would indicate because of various tax exemptions and deductions. B. has become extremely progressive as a result of taxpayers' being pushed into higher tax brackets by higher income levels. C. has experienced substantial increases in rates during the past two years. D. has a regressive structure.
As the quantity of a good consumed increases, its marginal utility ________ and its total utility ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
When consumers pay only a fraction of the true cost of medical services, their demand increases. The marginal cost of producing these extra services
A) is less than the marginal benefit consumers receive from them. B) is equal to the marginal benefit consumers receive from them. C) is greater than the marginal benefit consumers receive from them. D) is zero due to the insurance payments.
The Fed has which of the following as its strongest control over the money supply?
a. interest rate changes b. the discount rate c. open market operations d. the required reserve rate