The above table has the total product schedule for Joe's Barber Shop. Joe charges $6 per haircut. If the wage rate is $24 per worker, what quantity of labor will maximize profits?
A) 1 worker
B) 2 workers
C) 4 workers
D) 5 workers
C
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Which of the following statements best represents the opinion of many economists regarding the impact that changes in tax laws have had on recent changes in income inequality in the United States?
A) Reductions in income tax rates have favored high-income individuals more than low-income individuals. As a result, reductions in federal income tax rates have led to more income inequality. B) Reductions in income tax rates probably have had little impact on the distribution of income. C) Reductions in income tax rates have created greater incentives for low-income individuals to work, save, and invest. As a result, reductions in federal income tax rates have led to less income inequality. D) Reductions in income tax rates have been offset by increases in corporate income tax rates and payroll taxes. As a result, greater income inequality in the 1990s has been followed by a more equal distribution of income since 2001.
Firms emerge when transaction costs of using the market are less than the cost of hierarchical control
a. True b. False
Which of the following is a term referring to unemployment that occurs because individuals lack skills valued by employers?
a. cyclical unemployment b. underemployment c. natural unemployment. d. structural unemployment
The dictator game:
A. reveals nothing important about economic behavior because the money used is hypothetical. B. demonstrates that people care about fairness and will sacrifice financially for others. C. demonstrates nothing definitive about fairness, as concerns about the other player's perceptions will influence the dictator's choices. D. regularly results in the dictator taking all of the money for him/herself, as economic theory would predict.