Each of the following conditions, except one, must be satisfied in a perfectly competitive labor market. Which is the exception?

a. There are a large number of buyers of labor services.
b. Wages are the sole source of household income.
c. There are no barriers to entering the market.
d. There are a large number of sellers of labor services.
e. All workers appear the same to buyers of labor services.


B

Economics

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Which of the following statements best describes real per capita GDP in the US between 1929 and 1959?

a. It was a period of consistent increase. b. It was lower at the end of the period than the beginning because of the Great Depression. c. Although it was erratic in the early part of this period during the Great Depression, it increased consistently after World War II. d. It grew the most during World War II.

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When deciding what price to charge customers, a firm may choose to charge different prices based on customers'

a. Age b. Willingness to pay c. Location d. All of the above

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Which of the following about price discrimination is true?

a. A price-discriminating seller will charge consumers with an elastic demand a lower price than consumers with an inelastic demand. b. A firm must face a horizontal demand curve for its product in order to engage in effective price discrimination in a market. c. Price discrimination always harms consumers and helps sellers in the short run but in the long run, consumers benefit at the expense of sellers. d. A seller must have a monopoly in order to gain from price discrimination.

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Instrumental variables requires that the variable not be correlated with the outcome variable.

A. True B. False C. Uncertain

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