You are the manager of a gas station and your goal is to maximize profits. Based on your past experience, the elasticity of demand by Texans for a car wash is ?4, while the elasticity of demand by non-Texans for a car wash is ?6. If you charge Texans $20 for a car wash, how much should you charge a man with Oklahoma license plates for a car wash?
A. $18.00
B. $15.00
C. $1.50
D. $20.00
Answer: A
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Negative income tax plans have the disadvantage of decreasing work incentives in comparison to existing welfare programs without work incentives
a. True b. False Indicate whether the statement is true or false
A clinic uses doctors and nurses to serve the maximum number of patients given a limited annual payroll. The clinic currently has 10 doctors and 30 nurses. The last doctor hired can serve 300 additional patients, while the last nurse hired can serve 200 additional patients. If doctors make $60,000 a year and nurses make $20,000 a year, the clinic
A. is making the correct hiring decision because doctors are more productive than nurses. B. could serve more patients with the same payroll by hiring more doctors and fewer nurses. C. could serve more patients with the same payroll by hiring more nurses and fewer doctors. D. is making the correct hiring decision because doctors are paid more than nurses.
Owners of men's clothing stores traditionally discriminate against males when making hiring decisions because they believe that male customers are more eager to buy clothing from female associates. In reality, however, one's sex does not affect one's sales (i.e., one's sex does not affect one's productivity). Discrimination of this sort throughout the labor market has resulted in clothing stores paying male associates lower wages than they pay female associates. A new men's clothing store enters the industry without these prejudicial beliefs. Which of the following outcomes is not likely to come about?
A. The new store will likely have lower prices than existing stores. B. The new store will make greater profit than it would if it would hold similarly biased views. C. The new store will have lower per-employee labor costs than existing stores. D. The new store will have to hire female associates to compete with its competition. E. The new store will hire more male associates than the typical existing store.
Refer to the graph shown.
The middle quintile (the middle fifth) of families earn:
A. 32.6 percent of the income. B. 22.1 percent of the income. C. 10.7 percent of the income. D. 15.3 percent of the income.