Recall the Application about the salaries paid in Major League Baseball to answer the following question(s). Some Major League Baseball players are free agents, meaning they are free to negotiate a contract with any team. Other players are journeymen and apprentices, who are restricted to a single team.Recall the Application. On average, free agents in Major League Baseball tend to be paid a salary ________ their marginal revenue product.
A. significantly higher than
B. significantly lower than
C. close to
D. unrelated to
Answer: C
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The Peltzman study suggests that minimum standards of quality
a. overall create a net benefit for consumers by protecting them from dangerous products. b. overall hurt consumers by limiting entry and raising prices. c. are beneficial to consumers only when they are strictly enforced. d. rarely have any significant effect on the market.
Most recessions in the United States since World War II have begun with a
A) rise in oil prices. B) stock market crash. C) a major devaluation of the dollar. D) decline in residential construction.
In which of these instances is demand said to be perfectly inelastic?
a. An increase in price of 2% causes a decrease in quantity demanded of 2%. b. A decrease in price of 2% causes an increase in quantity demanded of 0%. c. A decrease in price of 2% causes a decrease in total revenue of 0%. d. An increase in price of 2% causes a decrease in quantity demanded of 1/2%.
Ceteris paribus, a weaker U.S. dollar does all of the following except
A. Reduce the prices paid by U.S. consumers for foreign-grown farm products. B. Raise costs of importing agricultural products from abroad to the United States. C. Generate short-run economic profits for farmers because it increases foreign demand for U.S. agricultural products. D. Raise the dollar value of farmland because it increases foreign demand for U.S. agricultural products.