Which of the following best describes compensating wage differentials?
A. Some jobs are more difficult than others, and the pay for them reflects this.
B. Some jobs require more training than others, and the pay for them reflects this.
C. Some jobs require more experience than others, and the pay for them reflects this.
D. Some jobs require unique abilities, and the pay for them reflects this.
Answer: A
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Explain what will happen to the equilibrium real wage and quantity of labor for each of the following scenarios, and use a graph of the aggregate labor market to show the changes
a. The government decreases income tax rates. b. The skill level of workers increases. c. A hurricane destroys a large portion of the capital stock. d. Workers increase their preference of labor over leisure. e. A technological change occurs that increases the productivity of all workers, and at the same time the government increases income tax rates. f. The overall skill level of workers decreases, and at the same time household wealth increases.
Externalities can be produced by ____________, as well as ____________.
A. individuals; firms B. market prices; market incomes C. oceans; streams D. none of these answer options are correct.
Many economists believe a comprehensive income tax
A. would balance efficiency and equity well. B. would be less efficient than excise taxes. C. would be more efficient than a lump sum head tax. D. would be less equitable than a lump sum head tax.
In the Nash equilibrium of a prisoner's dilemma:
A. there is unrealized opportunity for both to gain. B. total economic surplus is maximized. C. both players have equal payoffs. D. there is no cash left on the table.