Politicians often point to wage differentials as evidence of labor-market discrimination against ethnic minorities and women; however, economists argue against this approach because people differ in the amount of human capital they have and the kinds of work they are willing and able to do
a. True
b. False
Indicate whether the statement is true or false
True
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Using economic theory to analyze policy issues
A. is a way to avoid inconvenient facts. B. allows researchers to disprove a hypothesis. C. relies on simplifications to conduct studies. D. always includes the inclusion of political ideals.
Refer to Figure 16-5. Suppose the firm represented in the diagram decides to practice perfect price discrimination. What is the profit-maximizing price it will charge?
A) It should charge a range of prices from $40 to $16. B) It should charge a range of prices from $40 to $12. C) $2 D) $8
A supply curve is a:
A. graph that visually displays the supply schedule. B. graph depicting various price-quantity combinations of multiple goods. C. graph that shows the quantities of a particular good or service that producers will sell at one price. D. table that displays various price-quantity combinations of a good or service.
Which of the following best illustrates moral hazard?
a. After a person obtains life insurance, she takes up skydiving. b. A person obtains insurance knowing he is in poor health. c. A person holds stock only in very risky corporations. d. A person holds stocks from only a few corporations.