Explain why wage and salary income differs among individuals
What will be an ideal response?
Wage and salary income differ because jobs require different levels of human capital. Also, jobs pay compensating differentials if they are dangerous or involve poor working conditions.
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Economic takeoff:
A. occurs when development becomes self-sustaining. B. will eventually occur in all developing countries. C. typically occurs in the absence of foreign investment. D. has yet to occur in any developing country.
The vertical axis for an aggregate demand curve measures
A. real Gross Domestic Product (GDP). B. the interest rate. C. a nation's production level. D. the price level.
The social cost of cutting trees for firewood in a government forest is
A) the increased likelihood of flooding as more trees are cut. B) the increased likelihood of flooding as more trees are cut plus the private cost of cutting the trees. C) opportunity cost to the individual of cutting the wood. D) the marginal costs of cutting the last tree.
If the marginal cost of production is $10, the elasticity of demand for group 1 is -1.5, the elasticity of demand for group 2 is -2.5, and the price paid by group 1 is $15, the price for group 2 is
A) $8.33. B) $27. C) $15. D) Impossible to tell.