Which of the following statements is correct?
a. Compensating wage differentials reflect different skills of workers.
b. Discrimination by employers affects the marginal productivity of workers.
c. The signaling theory of education suggests that schooling does not affect worker productivity.
d. The superstar phenomenon explains why more talented entertainers earn more than less talented entertainers.
c
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Suppose the price of a DVD is $15 per unit. At that price, consumers wish to purchase 6,000 units weekly and producers wish to sell 4,000 units weekly. In this situation,
a. unsatisfied consumers will bid up the market price. b. the market price will fall because producers are unsatisfied. c. the price will rise and the demand will fall to bring the market to equilibrium. d. supply will increase by 2,000 units in order to satisfy consumers.
Which of the following would be most likely to shift the long-run aggregate supply curve (LRAS) to the right?
a. favorable weather conditions that increased the size of this year's grain harvest b. an increase in resource prices relative to product prices c. an increase in labor productivity as the result of improved computer technology and expansion of the Internet d. an increase in the cost of security as the result of terrorist activities
The classic example of a detrimental externality is
A. education. B. pollution. C. discovery of an AIDS vaccine. D. Mrs. Lewis’ prize-winning rose garden.
Points C, D, E, and H on the above graph show:
A. a constant trade-off between food and clothing. B. possible combinations of food and clothing. C. unattainable combinations of food and clothing. D. an inefficient allocation of society's scarce resources.