Answer the following questions true (T) or false (F)
1. In the market for factors of production, households earn income by supplying factors of production to firms.
2. One example of human capital is the amount of savings that you have.
3. Human capital refers to the accumulated skills and training that workers possess.
1. TRUE
2. FALSE
3. TRUE
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A labor market is divided into two segments. All workers have the same qualifications and find jobs in either segment equally attractive. Initially, both segments are in competitive equilibrium. If the development of employer prejudice then reduces the employment of minorities in one segment, there will be a
a. permanent drop in labor supply to the discriminating segment b. permanent increase in labor supply to the nondiscriminating segment c. temporary drop in labor supply to the discriminating segment d. permanent drop in labor demand to the discriminating segment e. temporary drop in labor demand to the nondiscriminating segment
An increase in the tariff on foreign-produced automobiles would most likely help
a. the domestic producers of automobiles. b. steel producers that sell most of their output to foreign producers of automobiles. c. workers in the foreign automobile industry. d. consumers looking for alternatives to domestic automobiles.
Is the firm a perfect competitor or an imperfect competitor?
An import ban results in:
A. a decrease in the supply of the product. B. an increase in the product's price. C. a decrease in the quantity of the product bought and sold. D. All of these.