Suppose that workers in the food service industry go on strike during an economic downturn because they are unwilling to accept a cut in their wages unless they know that workers in other industries are receiving similar wage cuts. This example is consistent with the
A. relative-wage explanation of unemployment.
B. efficiency wage explanation of unemployment.
C. social contract explanation of unemployment.
D. explicit contract explanation of unemployment.
Answer: A
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Two of the main focuses on development economics focuses on how countries can promote:
A. health and education. B. sound monetary policy and education. C. health and fiscal policy. D. sound monetary and fiscal policy.
Pollution taxes are intended to
A. reduce the budget deficit. B. incentivize firms to cut their pollution. C. reduce welfare of polluting firms. D. raise deadweight loss.
U.S. households headed by ________ are the most likely to be poor.
A. Hispanic males B. single males C. those under age 18 D. single women
In a "superstar economy," companies try to find only the very best talent. What effect has this had on labor markets?
A. There is a widening gap in income between people who are competent and people who are the very best. B. Per capita income has dropped because the "superstars" tend to save, rather than spend, their large salaries. C. The income gap has narrowed as the "superstars" come up with ideas to produce in ways that boost the pay of lower-income workers. D. Unemployment tends to increase because one top employee may replace two or three less competent employees.