Which of the following is a result of discrimination?
A. Two groups of workers earning different wages.
B. Two groups of workers paid the same wage, but proportionally fewer of one group are employed.
C. Equal pay and equal employment opportunities for two groups of workers with different productivities.
D. No workers from a particular group are employed.
Answer: C
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Profit is the return to entrepreneurship.
Answer the following statement true (T) or false (F)
A change in quantity demanded of a good always results from a change in
a. income b. tastes c. the price of the good d. both income and tastes e. the price of other goods
If the price of labor is constant and a firm experiences diminishing marginal product, then its
A. average variable cost increases. B. fixed costs increase. C. marginal costs decrease. D. total costs decrease.
If prices of goods and services are inflexible, then:
A. A negative demand shock would lead to increased real GDP in the short run B. A positive demand shock would lead to increased real GDP in the short run C. A negative demand shock would have no short-run effect on real GDP D. There would be no short-run demand shocks