If a firm has two plants, one located in desirable Scenic Springs and the other located in the undesirable Swamp Lands, the workers in Scenic Springs will be paid ________ than the workers in Swamp Land and the difference in wages is referred to as a ________.
A) less; compensating wage differential
B) less; worker equity payment
C) more; worker equity payment
D) more; compensating wage differential
A) less; compensating wage differential
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The problem of bringing economic agents together to trade is referred to as the:
A) incentive problem. B) coordination problem. C) correspondence problem. D) scarcity problem.
Monopolies are always large firms with great economies of scale.
Answer the following statement true (T) or false (F)
Most economists agree that the self-correcting mechanism works
a. very slowly. b. very rapidly. c. rapidly in the short run and slowly in the long run. d. slowly in the short run and rapidly in the long run.
Which of the following would cause an increase in the demand for U.S. dollars?
a. an interest rate cut in the United States b. an interest rate cut in Europe c. an interest rate increase in Europe d. a recession in Europe