Two workers are employed in the same job by the same firm; however, they are paid different wage rates. This could be explained by differences in
a. the income effect
b. the price of the firm's output
c. their marginal products due to differences in ability
d. working conditions
e. risk
C
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Recent research has shown that the first firm to enter a market often does not have a long-term advantage over later entrants into the market. An example that has been used to illustrate this is
A) Xerox, which became a generic term for making photocopies. B) McDonald's entry into the high-end coffee market. C) the introduction of the first ballpoint pen in 1945. D) Abercrombie and Fitch, which was the first clothing company to market to young men.
For an individual who consumes only two goods, X and Y, the opportunity cost of consuming one unit of X in terms of how much Y must be given up is reflected in
a. the individual's marginal rate of substitution. b. the slope of the individual's budget constraint. c. the slope of the individual's indifference curve. d. None of the above.
Which of the following is not necessarily a characteristic of perfect competition?
a. low prices b. a large number of buyers and sellers c. a homogeneous product d. perfect information e. easy entry and exit in the long run
The buying and selling of government bonds by the FOMC constitutes:
a. an open market operation. b. a federal funds adjustment. c. a discount rate adjustment. d. a change in the reserve requirement. e. sterilization of the money supply