Most wage differences can be understood while maintaining the assumption of equilibrium in the labor market. We deviate from that assumption, however, when we consider
a. the superstar phenomenon.
b. the theory of efficiency wages.
c. compensating differentials.
d. differences in educational attainment.
b
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For the monopoly shown in the figure above, the profit maximizing price is ________ per unit
A) $10 B) $20 C) $30 D) $50
Can macroeconomic policy be used systematically to create unanticipated inflation?
A) No, according to Keynesian economists. B) Yes, according to classical economists. C) No, according to classical economists. D) Yes, according to Keynesian economists, if Ricardian equivalence holds.
The loss associated with the fact that at the profit-maximizing quantity consumers value the goods more than it cost to produce them is called
A) deadweight loss. B) comparative loss. C) Lerner Loss. D) Consumer Value Loss.
Even though international trade in undertaken voluntarily, a country that engages in trade may not benefit from it
a. True b. False Indicate whether the statement is true or false