Why do skilled workers earn relatively higher wages than unskilled workers?
a. The marginal productivity of skilled workers is low.
b. The marginal cost of hiring skilled workers is low.
c. The supply of skilled workers is relatively less.
d. There is an abundant supply of skilled workers.
e. The marginal cost of hiring unskilled workers is high.
c
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A decrease in supply means that
a. demand will increase by the same amount b. the quantity supplied increases c. the quantity supplied decreases d. at every price level, the quantity supplied decreases e. the supply curve shifts to the right
In a labor market, the monopsonist faces the entire ___________.
Fill in the blank(s) with the appropriate word(s).
Jeremy is thinking of starting up a small business selling NASCAR memorabilia. He is considering setting up his business as a sole proprietorship. What is one advantage to Jeremy of setting up his business as a sole proprietorship?
A) As a sole proprietor, Jeremy would face limited liability. B) As a sole proprietor, Jeremy would have the ability to share risk with shareholders. C) As a sole proprietor, Jeremy would have both ownership and control over the business. D) All of the above would be advantages of setting up his business as a sole proprietorship.
Refer to the graph shown. With an effective price floor at $8, the effect is an implicit tax on:
A. consumers equal to $30. B. consumers equal to $50. C. suppliers equal to $50. D. suppliers equal to $30.