Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point D to Point B, the opportunity cost of hybrid cars, measured in terms of motorcycles,
A. initially increases, then decreases.
B. increases.
C. remains constant.
D. decreases.
Answer: B
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The figure above shows a time-series graph. The horizontal axis measures ________ and the vertical axis measures ________
A) time; x-values B) time; the variable of interest C) the variable of interest; time D) y-values; the variable of interest
Which of the following is a reason why it is difficult to estimate the extent of economic discrimination in the labor market?
A) Differences in wages can be attributed to many other factors as well, such as differences in productivity and preferences. B) Ultimately, employers who discriminate cannot remain profitable. C) Employers who discriminate pay an economic penalty. D) Employers who discriminate are likely to do so in overt ways such as awarding some workers with benefits-in-kind.
Suppose a monopsonist wants to hire more workers. If it has to pay the same wage rate to all of its workers
a. the marginal labor cost will fall while the wage rate will rise b. the wage rate will fall while the marginal labor cost will rise c. the difference between the wage rate and the marginal labor cost will decrease d. the difference between the wage rate and the supply curve of labor will increase e. both the wage rate and the marginal labor cost will increase
Higher levels of human capital are correlated with higher earnings because firms are willing to pay more for better-educated workers who have higher marginal productivities
a. True b. False Indicate whether the statement is true or false