Which of the following statements is true?
A) Output is likely to be the same in a command economy and a market economy.
B) Output is likely to be lower in a market economy than a command economy.
C) Output is likely to be lower in an economy with extractive institutions than an economy with inclusive institutions.
D) Output is likely to be the same in an economy with extractive institutions and an economy with inclusive institutions.
C
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There are several criticisms of the minimum wage. Which of the following is not one of those criticisms? The minimum wage
a. often hurts those people who it is intended to help. b. results in an excess supply of low-skilled labor. c. prevents some unskilled workers from getting needed on-the-job training. d. fails to raise the wage of any employed person.
Related to the Economics in Practice on page 214: According to the Economics in Practice, firms where managers had more extensive training experienced
A. a decrease in the marginal product of labor. B. increased productivity. C. increasing wage rates. D. a decrease in the marginal revenue product of labor.
Which of the following would be included in the calculation of Gross Domestic Product (GDP)?
A) the value of spending on new machinery and equipment B) the value of the sale of 1,000 shares of IBM stock C) the value of transfer payments D) the value of the sale of a used guitar
If Best Lights, Lights R Us, and Bright Lights are all competing in the light bulb market and Best Lights consistently is the first to change prices, Best Lights might be ________.
A) offering to be the price leader B) signaling to the other firms to consistently lower their prices C) signaling to the other firms to consistently raise their prices D) signaling to the other firms to consistently maintain their prices