Refer to Table 4-8. Suppose that the quantity of labor demanded increases by 40,000 at each wage level. What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?
A) W = $8.00; Q = 390,000 B) W = $8.50; Q = 380,000
C) W = $10.00; Q = 390,000 D) W = $9.50; Q = 380,000
C
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Which of the following is an example of a compensating wage differential?
A) Workers in a dynamite mine receive higher wages than if they worked in other jobs that require the same level of skills. B) Nurse anesthetists are paid less than anesthesiologists (who have medical degrees). C) In the market for lawyers, top graduates from the top programs earn starting salaries that are significantly higher than the starting salaries earned by lower-ranked graduates from the lower-ranked programs. D) Popular movie stars like George Clooney command much higher salaries than other talented but lesser-known actors.
A person that is risk averse
A) exhibits decreasing marginal utility of wealth. B) exhibits increasing marginal utility of wealth. C) always engages in fair bets. D) loves lotteries.
A tax system under which an individual pays a higher fraction of his income in taxes at higher levels of income is formally described as
A. digressive. B. progressive. C. proportional. D. regressive.
Explain why a perfectly competitive firm can sell as much as it wants at the market price but a monopolist must lower its price to sell more.
What will be an ideal response?