One cause of income inequality in the United States is:
A. the free public school system.
B. differences in preferences for market work relative to nonmarket activities as well as
differences in preferences for types of work.
C. antidiscrimination laws.
D. a system of taxes and government transfers that redistributes income away from the lowest
earners.
Answer: B
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Which of the following factors is likely to increase the amount of available labor and decrease the real wages of workers?
A) in increase in the supply of capital stock B) a large number of factory closings C) consumers demanding more goods D) a high influx of immigration
The additional benefit of increasing some activity by one-unit is called the
A) scarcity. B) total benefit. C) opportunity cost. D) marginal benefit. E) unit cost/benefit.
John Amaker owns orange groves and hires pickers for a two-week period as shown in Table 7-3.Table 7-3 Pickers Oranges Picked 1 1,000 2 2,000 3 3,000 4 3,900 5 4,700 6 5,400 7 6,000 8 6,200 9 6,000 In Table 7-3, the marginal physical product of the fifth picker is
A. 4,700. B. 900. C. 800. D. 3,900.
If price is above average variable cost and below average total cost, a profit-maximizing price taker should
a. immediately shut down; failing to do so is contrary to the idea of profit maximization in a competitive market. b. continue producing as long as it expects the market price to rise above average total cost in the near future. c. attempt to push price upward by slowly reducing output. d. cut price so more units can be sold.