Bucky and Satchel are offered identical jobs, each paying $80,000 per year. According to behavioral economics:
A. they should feel equally good about the job offer.
B. how each will feel about the job offer will depend on their current positions and incomes.
C. if Bucky's current income is $60,000 per year, and Satchel's is $70,000 per year, we would
expect Bucky to receive twice as much additional utility from taking the job as Satchel would.
D. if the jobs will not change their income, they are more likely to switch jobs than remain with
the status quo.
Answer: B
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If Sam does not have a job and is NOT looking for work, he is considered
A) unemployed and not in the labor force. B) not in the labor force. C) unemployed. D) unemployed and in the labor force.
A perfectly competitive firm incurs a loss in the short run, if at the profit maximizing level of output:
a. the marginal revenue curve lies below the marginal cost curve. b. the marginal revenue curve lies above the average revenue curve. c. the average cost curve lies below the average revenue curve. d. the average revenue curve lies below the average cost curve. e. the marginal revenue curve lies above the marginal cost curve.
"Other things equal, when the price of a good rises, the quantity demanded of the good falls, and when the price falls, the quantity demanded rises." This relationship between price and quantity demanded is referred to as
a. equilibrium b. the law of demand. c. the relationship between demand and income. d. the definition of a normal good.
Monopsonistic exploitation is
A) measured by the area above the supply curve but below the wage paid. B) the difference between the marginal revenue product of a worker and the wage received by the worker. C) measured by the height of the supply curve of labor. D) the cost to society from unions.