What do “wages” and “wage rates” mean in economics? How do they differ from labor earnings?
What will be an ideal response?
Wages and wage rates are the price paid for labor. They are also a price paid per unit of time--daily, weekly, or monthly. It is a broader concept that is more than just fixed payment, and can cover monthly salary, bonuses, royalties, or commissions. Labor earnings are simply the hourly wage or wage rate multiplied by the number of hours worked per period of time (weekly, monthly, yearly).
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Production possibilities frontiers usually curve out and away from the origin. The implication is
A) that as resources are used to produce one good, fewer resources are available to produce another good. B) that the opportunity cost of producing a good goes down as more of that good is produced. C) technological change is present. D) that the opportunity cost of producing a good stays the same regardless of how much of that good is produced. E) some resources are better at producing one good while other resources are better at producing alternative goods.
If the price of a pizza were to increase to $50, many people would give up eating pizza while others would continue to eat it. This would indicate
A) those who are buying pizza value it at least $50 per pizza. B) those who are not buying pizza value it more than $50 per pizza. C) only those who are extremely wealthy are buying pizza. D) the price of pizza needs to be regulated by the federal government.
Corporations have the disadvantage of which of these? (i) double taxation; (ii) unlimited liability.
A. (i) and (ii) B. (i) but not (ii) C. (ii) but not (i) D. neither (i) nor (ii)
When governments rapidly increase the supply of money, the usual result is
A. deflation. B. low inflation. C. hyperinflation. D. increasing long-term investment.