What factors determine the differences in salaries, wages, and income that we observe?
What will be an ideal response?
Differences in wage and salary incomes across households result from differences in the characteristics of workers (skills, training, education, experience, and so on) and from differences in jobs (dangerous, exciting, glamorous, difficult, and so on). Household income also varies with the number of household members in the labor force, and it can decline sharply if members become unemployed.
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The short-run aggregate supply curve slopes upward as a result of the real balance effect, the interest rate effect, and the international trade effect
Indicate whether the statement is true or false
The production function for good X exhibited in the table below is for the:Production Function for Good XL*KQMPK=(?Q/?K)APK=(Q/K)LaborCapitalOutputMarginal Product of CapitalAverage Product of Capital900----910575.75.7092032426.716.2093065733.3B9401,07241.526.809501,52445.230.489601,97645.232.939702,39141.534.169802,72433.334.059902,991A33.2391003,0485.730.4891103,016-3.227.4291202,945-7.124.54
A. short run, since L is the fixed input. B. long run, since K is the variable input. C. short run, since L is the variable input. D. long run, since K is the fixed input.
The market tends to underproduce public goods because
A. The consumption of a public good by one person prevents the consumption of the same good by another person. B. It is difficult to measure the benefit of a public good such as national defense. C. The free-rider dilemma results in exclusive consumption of a good. D. Joint consumption allows those who do not pay for the good to still benefit from the good.
In the long-run...
What will be an ideal response?