Persistent wage differentials in the U.S. can best be explained by
a. increased immigration of both skilled and unskilled workers
b. increased labor-force mobility among the states
c. the existence of noncompeting labor markets
d. the existence of backward-bending labor supply curves
e. the increasing competitiveness of firms in labor markets
C
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During the 2008 Presidential campaign, candidate Barack Obama proposed
A. re-imposing the 6.2% (old-age) Social Security tax on incomes over $250,000 per year. B. raising the "income cap" for Social Security taxes from $106,800 to $250,000. C. eliminating entirely the Social Security taxes paid by employers. D. reducing by one-half the Social Security tax rates on employers.
Which of the following would be an illustration of a microeconomic issue affecting U.S. auto manufacturers?
A) An introduction of new, more fuel efficient models by Japanese competitors. B) A recession in Europe that causes U.S. auto exports to Europe to decline. C) A decline in the demand for new cars in the U.S. due to an economic downturn. D) An appreciation of the U.S. dollar relative to the Japanese yen.
Supporters of raising the minimum wage argue that minimum-wage laws are
a. a tax-free way to help the working poor. Businesses bear the burden of paying higher wages, not the government. b. better than the Earned Income Tax Credit (EITC) in targeting the working poor. The EITC may benefit teenagers from middle-class families who work summer jobs at the minimum wage. c. better than in-kind transfers such as food stamps in providing food rather than unhealthy items such as drugs or alcohol. d. a way to increase employment of those likely to earn the minimum wage.
In the long run, which of the following is likely to be a variable cost?
A. Wage costs but not costs for equipment. B. Rent, wages, and all other costs are variable in the long run. C. Factory rental but not wage costs. D. Interest payments on borrowed funds but not utilities.