Callie has just graduated from Hairs-R-Us Beauty School with a license to cut hair. She can earn $15 an hour styling hair at the local hair salon or $20 an hour styling hair at the local funeral home. The higher wage offered by the funeral home is an example of
a. a human capital differential.
b. a compensating differential.
c. signaling theory.
d. the superstar phenomenon.
b
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Joe likes to sleep late in the mornings and play tennis in the afternoons. The opportunity cost of Joe attending his morning class for one hour is
A) an hour of tennis given u
The easiest way to create greater income equality is to _____
a. raise everyone's income by the same percentage b. raise everyone's income by the same amount c. raise the incomes of the poor d. lower the incomes of the rich
When a business produces a product that creates external costs
A) the company produces a level of output larger than would be produced without the external cost. B) the company produces a level of output smaller than would be produced without the external cost. C) the company produces a level of output which would be the same as it would produce without the external cost. D) the market provides the efficient level of output even with the existence of the external cost.
Limited liability is a characteristic of
A) partnerships only. B) corporations only. C) partnerships and proprietorships only. D) proprietorships only.