Which of the following is an example of labor-market discrimination? You may assume that worker A and worker B have identical characteristics except for the ones listed. A firm offers a higher salary to worker A than worker B because worker A
a. has more education.
b. is willing to work the night shift.
c. is a man, whereas worker B is a woman.
d. has better performance reviews, indicating higher productivity.
c
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
The number of computers bought increased by 20 percent when the price of on-line services declined by 10 percent. Assuming other factors are held constant, computers and on-line services are classified as:
a. complements. b. unrelated goods. c. substitutes. d. social goods.
To internalize a positive externality:
a. the consumers of a good could receive a subsidy equal to the external benefit resulting from the production or consumption of the good. b. a producer's costs could be increased by an amount equal to the external benefit resulting from the production of the good. c. consumers of the good could pay a tax equal to the external benefit resulting from the production or consumption of the good. d. None of the above are correct.
The Earned Income Tax Credit
a. tends to increase income inequality. b. is a program that provides additional income to workers with above-average incomes. c. tends to reduce income inequality. d. is both a and b.