Which of the following could help explain why professional football players have high salaries?
a. There is little social status attached to the occupation.
b. Their marginal revenue products are typically very low.
c. They face a high chance of having their careers cut short.
d. Many college football players want to become professional football players.
e. The labor market is perfectly competitive due to the players' union.
C
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If a tax cut increases people's labor supply, then
A) tax cuts increase potential GDP. B) tax cuts decrease aggregate demand. C) tax cuts decrease potential GDP because the real wage rate falls. D) tax cuts cannot affect aggregate demand. E) Both answers B and C are correct.
The money demand curve, against possible levels of interest rates, has a
A) negative slope. B) zero slope. C) positive slope. D) positive slope for low levels of money demand, and a negative slope for high levels of money demand.
Which of the following provides the strongest evidence that the corporate form of business structure is relatively cost efficient in many industries?
a. the ability of the corporate business structure to compete effectively in most industries with other forms of business structure b. the fact that nearly three of every four businesses in the United States is an individual proprietorship c. the fact that economic theory indicates corporate managers have some leeway to pursue their own interests at the expense of greedy capitalists d. the ability of some corporate managers to achieve high salaries even though the firms they are directing are not earning economic profit
Which of the following is the government most likely to discourage because of the existence of externalities?
A. Foods that taste good. B. Thermal pollution from a power plant that improves fishing downstream. C. Cars that create an excessive amount of exhaust fumes. D. All goods and services produced by monopolies.