After much negotiation with a customer, a plumber agrees to do a job for $50 an hour. In fact, the job is so unpleasant that he would not have done the job for anything less than $50 an hour even though other plumbers have done similar jobs for $40 an hour. His wage-related rent is
a. $50
b. $40
c. $100
d. $10
e. $0
E
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In the United States, between 1961 and 2011, there has been
i. a consistent , non-changing growth rate of potential GDP per person. ii. an increase in the standard of living based on real GDP per person. iii. fluctuations in real GDP per person around potential GDP per person. A) ii only B) i, ii and iii C) i and ii only D) ii and iii E) i only
The substitution effect is thought to dominate the behavior of low-wage workers.
Answer the following statement true (T) or false (F)
An economy has two workers, Paula and Ricardo. Every day they work, Paula can produce 4 computers or 16 shirts, and Ricardo can produce 6 computers or 12 shirts. What is the opportunity cost for Paula to produce one computer?
A. 1 shirt B. ¼ shirt C. ½ shirt D. 4 shirts
The number of U.S. workers in unions today is:
A. about 13%of all wage and salary workers. B. roughly equivalent to what it was in the 1950s. C. just under 15 million Americans. D. not something we can estimate due to the lack of information on all people in the labor market.