Briefly compare the structural unemployment that arises from minimum-wage laws to the frictional unemployment that arises from the process of job search
Minimum-wage laws create unemployment because the quantity of labor supplied at the minimum wage exceeds the quantity demanded. Thus, unemployed workers are waiting for jobs to open up. Frictional unemployment arises because even when there are jobs available, the matching process takes some time.
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If, as some economists believe, changes in technology over recent decades have brought about changes in labor markets, then those changes likely have resulted in
a. reduced emphasis on compensating differentials as an explanation for wage differences. b. a reduced emphasis on human-capital differences among workers as an explanation for wage differences. c. a narrowing of the earnings gap between high-skilled workers and low-skilled workers. d. a widening of the earnings gap between high-skilled workers and low-skilled workers.
The underlying reason that there are unattainable points on a production possibilities frontier diagram is that there
A. is a scarcity of resources within a fixed level of technology. B. is unemployment of resources. C. are always choices that have to be made. D. is government.
Since World War II, state and local government revenues have been a
a. growing share of total government revenues. b. shrinking share of total government revenues. c. stable share of total government revenues. d. minuscule share of total government revenues.
Refer to the information provided in Table 14.2 below to answer the question that follows. Table 14.2B's Strategy ?AdvertiseDon't Advertise??A's profit $100 millionA's profit $200 million?AdvertiseB's profit $100 millionB's profit $50 millionA's Strategy????Don'tA's profit $50 millionA's profit $75 million?AdvertiseB's profit $200 millionB's profit $75 millionRefer to Table 14.2. Firm A's dominant strategy is to not advertise.
Answer the following statement true (T) or false (F)