Which of the following explains the "beauty premium" differences in wages?
a. People who spend time on their personal appearance may send a signal that they are more productive workers.
b. Personal appearance and intelligence are inversely related.
c. The "superstar phenomenon" explains the "beauty premium.".
d. Better-looking people are more efficient; thus, they are paid an efficiency wage.
a
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Jon is risk averse. When he buys insurance against all risks, then
A) he knows his wealth with certainty. B) his utility exceeds his expected utility. C) his wealth exceeds his expected wealth. D) all of the above.
Refer to Figure 9-4. Suppose the government allows imports of leather footwear into the United States. What will be the domestic quantity supplied?
A) Q0 B) Q1 C) Q2 D) Q2 - Q0
The marginal cost is the slope of the:
a. marginal product curve. b. total cost curve. c. total product curve. d. long-run average total cost curve.
Suppose two firms operate under a system of marketable pollution permits. If it costs Firm A $25 to reduce pollution by 1,000 units per day, and Firm B can reduce costs by $35 by increasing pollution by 1,000 units per day:
A. the firms cannot gain by trading the right to pollute. B. both firms can benefit if Firm A trades the right to pollute 1,000 units to Firm B for $30. C. both firms can benefit if Firm A trades the right to pollute 1,000 units to Firm B for $40. D. both firms can benefit if Firm B trades the right to pollute 1,000 units to Firm A for $30.