Using Figure 35.2, the opportunity cost of producing 1 pair of golf shoes in the United States is
A. 1/3 of a baseball.
B. 2 baseballs.
C. 3 baseballs.
D. Less than the opportunity cost in Mexico.
Answer: C
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The Solow model emphasizes the role of which of the following factors of production?
A) land B) labor C) capital D) natural resources
Which of the following would indicate that an income tax is progressive?
a. high-income people pay $3,000 . low-income people pay $1,000 b. low-income people pay $3,000 . high-income people pay $1,000 c. high-income and low-income people all pay $1000 each d. high-income people pay 20 percent of their income in taxes; low-income people pay 10 percent e. both high-income and low-income people pay 10 percent of their income in taxes
Which of the following statements concerning the supply of labor is true?
A. The wage rate has no effect on the supply of labor. B. The labor supply curve is downward sloping. C. The supply of labor is determined by the prevailing wage rate. D. The typical labor supply curve is upward sloping.
Efficiency wage theory suggests that
A) workers will be paid less than their reservation wage. B) productivity might drop if the wage rate is too low. C) the government can only set tax rates so high before people will prefer not to work. D) unskilled workers will have a lower turnover rate than skilled workers. E) firms will be more resistant to wage increases as the labor market tightens.