A deferred payment scheme is more likely to be accepted by a worker if
A) the firm has a reputation of not firing senior employees to save pension costs.
B) the worker is very young.
C) the worker is very old.
D) None of the above.
A
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When deriving an Engel curve, if the optimum point for good X lies to the left as income increases, good X is
a. a normal good. b. an inferior good. c. a Giffen good. d. a substitute for good Y.
Which of the following is not an example of agenda control?
a. The assignment of members of Congress to committees. b. Determination of the ballot language of a tax-and-expenditure limitation initiative. c. Special interests deciding which members of Congress deserve their attention. d. The majority caucus decides who can run for Speaker of the House of Representatives.
When sellers are unable to distinguish "good" buyers from "bad" ones, they face the problem of:
A. Moral hazard B. Adverse selection C. Externalities D. Diminishing utility
Answer the following statement(s) true (T) or false (F)
1. The difference between the earnings of a college graduate and an unskilled worker constitute the rent on human capital. 2. Positive externalities created by human capital provide one explanation of why firms do not move more capital to low-wage areas. 3. If most employers discriminate on the basis of race, then wage differentials between whites and blacks will certainly occur. 4. If there is discrimination, employers engage in it at a cost. 5. One reason that the extent of discrimination is difficult to measure is that workers sometimes choose to accept lower-paying jobs even though higher-paying jobs are available.