The fact that wage differentials continue to exist across different groups of workers leads economists to believe that
a. firms apparently are not profit maximizers.
b. discrimination by customers is the most common type of economic discrimination.
c. the market has failed to properly allocate wages to different workers.
d. differences in human capital and job characteristics must be important in explaining the differences in wages.
d. differences in human capital and job characteristics must be important in explaining the differences in wages.
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Which of the following is an incorrect observation? a. Import tariffs benefit domestic producers and the government, but harms domestic consumers
b. Gains from trade in terms of world output are reduced by export subsidies. c. The overall domestic employment effects of a tariff imposition are likely to be positive. d. If the imposition of a tariff leads to retaliatory tariffs by other countries, domestic employment outside the industry gaining the tariff protection would likely suffer.
For the six years following the passage of the North American Free Trade Agreement (NAFTA),
a. the U.S. economy had some of the slowest job growth and highest unemployment in its history. b. the U.S. economy had some of the most rapid job growth and low unemployment in its history. c. the U.S. economy had some of the most rapid job growth and modest unemployment in its history. d. the U.S. economy had some of the slowest job growth and modest unemployment in its history.
The Federal Reserve System was established
a. at the request of farmers to keep down interest rates. b. because Americans believe in centralization of authority. c. after four severe bank panics between 1873 and 1907. d. as part of the Treasury Department.
One common source of market failure is:
A. perfect competition. B. pollution. C. perfect information. D. private goods.