George and Susan work at the same brewery. George works in advertising. Susan works as a forewoman in the bottling plant. George is paid more than Susan
a. Because the male worker earns a higher salary than the female worker, the employer must be discriminating against women.
b. If George has better performance reviews than Susan, the company might be rewarding George for his high productivity.
c. If forepersons at bottling plants typically earn more than employees in the advertising department, then the brewery must be discriminating against women.
d. George might be earning more because he works the day shift while Susan works the night shift.
b
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A $10 per-unit tax on cell phones raises the equilibrium price paid by consumers by $5. Before the tax, 5,000 cell phones were sold per year. The revenue from the tax is
A) zero. B) positive but less than $50,000 per year. C) $50,000 per year. D) more than $50,000 per year.
What does the demand curve facing a monopoly look like? Why?
What will be an ideal response?
Of the recessions and expansions from 1950 to 1990, the common events were
a. reactions to war and oil prices b. tax increases and tax cuts c. changes in exports d. Decreases in welfare spending e. Increases and decreases in health care spending
Asymmetric information before a transaction takes place generates the problem of
A. bank runs. B. intermediation. C. flawed bank regulation. D. adverse selection.