Matthew just graduated from culinary school. He can earn $40,000 a year working for the same local bakery he has worked at since before starting culinary school, or accept a job offer he received after graduation from a high-end restaurant paying $70,000 a year. The higher salary is a result of
a. a compensating differential.
b. efficient union bargaining.
c. having more human capital.
d. pure luck.
c
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Luis wonders why commercials appear more frequently at the end of a TV movie than at the beginning. Carol says that this pattern can be explained by the
a. share of the viewer's budget spent on TV watching b. length of the adjustment period c. cost of supplying additional minutes of the movie d. high elasticity of demand for watching the end of a TV movie e. availability of substitutes
In a labor market with one employer, the MFC is:
a. above the labor supply curve. b. above the labor demand curve. c. what determines the wage. d. downward sloping. e. perfectly horizontal.
Bartering is:
A. very efficient compared to using money. B. slightly inefficient compared to using money. C. just as efficient as using money. D. extremely inefficient compared to using money.
Last year country A had a nominal GDP of $600 billion, a GDP deflator of 150 and a population of 40 million. Country B had a nominal GDP of $720 billion, a GDP deflator of 120 and a population of 50 million. From these numbers which country is likely to have had the higher standard of living?
a. Country A because it had the higher nominal GDP per person. b. Country B because it had the higher nominal GDP per person. c. Country A because it had the higher real GDP per person. d. Country B because it had the higher real GDP per person.