A portion of a worker's earnings is economic rent if the worker
A) has skills that make him more productive than an unskilled worker.
B) would accept a small reduction in pay without quitting.
C) was the last person hired at the going wage rate.
D) has been on the job for at least a year.
Answer: B
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Using a production possibilities curve, an economy that produces an output combination less than the maximum possible is depicted by a point located:
a. at the top corner of the curve. b. near the middle of the curve. c. at the bottom corner of the curve. d. outside the curve. e. inside the curve.
Figure 4.4 illustrates the supply of tacos. A technological advancement which makes tacos cheaper to produce would most likely cause a movement from:
A. point a to point c. B. point c to point a. C. S2 to S0. D. S0 to S2.
The rate of unemployment is calculated as the number of
A. people in the civilian labor force divided by the number of unemployed. B. unemployed workers divided by the number of employed workers. C. employed workers divided by the number of unemployed workers. D. unemployed divided by the number of people in the civilian labor force.
Because minimum wage is a price floor
A) it will be set below the market equilibrium price. B) it will create a deadweight loss. C) it will increase the number of jobs available in the labor market. D) it will maximize consumer surplus.