When economists say that the demand for labor is a derived demand, they mean that it is:
A. dependent on government expenditures for public goods and services.
B. related to the demand for the product or service labor is producing.
C. based on the desire of businesses to exploit labor by paying below equilibrium wage rates.
D. based on the assumption that workers are trying to maximize their money incomes.
Answer: B
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Which fundamental economic question requires society to decide the mix and quantity of goods and services it will produce?
A. The What to Produce question. B. The Why to Produce question. C. The How to Produce question. D. The For Whom to Produce question.
Which statement best describes a command economy?
A. The production of goods and services is determined primarily by markets, but the allocation of goods and services is determined primarily by government. B. The production and allocation of goods and services is determined primarily through markets. C. The production and allocation of goods and services is determined primarily through government. D. The production of goods and services is determined primarily by government, but the allocation of goods and services is determined primarily by markets.
One reason that professional baseball players earn higher incomes than college professors is that:
A. the training costs to enter the baseball profession are low. B. there no barriers to entry in the baseball profession. C. few people have the skill to play professional baseball. D. being a college professor requires less education.
Which of the following describes the infant industry argument for protectionism?
A) An industry must be protected in its early stages of development so that firms can compete with government-subsidized foreign competition. B) Some strategic industries must be protected to ensure adequate supplies of resources needed for national defense in emergencies. C) Domestic producers in high-wage countries must be protected from foreign producers in low-wage countries to produce a level playing field. D) Domestic producers require time to gain experience and lower their unit costs; this will allow these producers to compete successfully in international markets.