Discrimination based on institutional factors occurs when:
A. women postpone having children in order to succeed professionally.
B. women remain in low-paying jobs because of family responsibilities.
C. employers hire a man who is more qualified than a woman.
D. employers pay women less than men for doing the same job.
Answer: B
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Productive efficiency occurs at the point where
A. consumer surplus exceeds producer surplus by the greatest amount. B. the production technique minimizes cost. C. the production technique minimizes economic surplus. D. marginal benefit exceeds marginal cost by the greatest amount.
In the figure above, both Joe and Jill initially produce at point A. If Joe and Jill realize that they each possess a comparative advantage, which outcome can we expect?
A) Joe will specialize in shirts and Jill will specialize in pants. B) Joe will specialize in pants and Jill will specialize in shirts. C) Joe and Jill each will be able to consume more than 2 shirts and 2 pairs of pants. D) Both answers B and C are correct.
Sharmila has a budget line for DVDs and books. DVDs are on the vertical axis and books on the horizontal. Her budget line becomes steeper as
A) the price of a DVD falls. B) the price of a DVD rises. C) her income decreases. D) her income increases.
Economists assume people behave
A) instinctively. B) rationally. C) irrationally. D) greedily.