1.
Treating an individual as typical of a group is the definition of
A
pure discrimination
B
statistical discrimination
C
human capital
D
specific skills
Loading practice questions
24 practice sets · Page 1 of 2
Treating an individual as typical of a group is the definition of
pure discrimination
statistical discrimination
human capital
specific skills
Skills that embodied in a person are called
Human capital
Embodied skills
Physical capital
Experience skills
If worker A earns more in wages than worker B, it could be because:
The product made by worker A sells for a higher price than that made by worker B
Worker A uses more capital per worker than worker B
Worker A has more natural ability than worker B
All of the above
Which skills are most likely to be paid for by the employer?
General skills
Specific skills
Educational skills
Skills that can be transferred to other employers are called:
general skills
specific skills
non-pecuniary skills
all of the above
The demand for labor will be more elastic if:
there are few substitutes for labor
there is a short time under consideration
labor is a large percent of the total cost of production
the demand for the product is relatively inelastic
The demand for labor slopes down and to the right because of
the law of demand
the iron law of wages
the law of diminishing marginal returns
economies of scale
The demand for labor is the same as the
marginal revenue product
marginal physical product
marginal cost
wage
In price discrimination, which section of the market is charged the higher price?
the section with the richest people
the section with the oldest people
the section with the most inelastic demand
the section with the most elastic demand
In order to practice price discrimination, which of the following is needed?
some degree of monopoly power
an ability to separate the market
an ability to prevent reselling
all of the above
Which of the following best defines price discrimination?
charging different prices on the basis of race
charging different prices for goods with different costs of production
charging different prices based on cost-of-service differences
selling a certain product of given quality and cost per unit at different prices to different buyers
Compared to the case of perfect competition, a monopolist is more likely to:
charge a higher price
produce a lower quantity of the product
make a greater amount of economic profit
all of the above
In order to maximize profits, a monopoly company will produce that quantity at which the:
marginal revenue equals average total cost
price equals marginal revenue
marginal revenue equals marginal cost
total revenue equals total cost
In pure monopoly, what is the relation between the price and the marginal revenue?
the price is greater than the marginal revenue
the price is less than the marginal revenue
there is no relation
they are equal
Which of the following is a characteristic of pure monopoly?
one seller of the product
low barriers to entry
close substitute products
perfect information
The goal of a pure market economy is to best meet the desires of
consumers
companies
workers
the government
If there is a price ceiling, which of the following is NOT likely to occur?
rationing by first-come, first-served
black markets
gray markets
sellers providing goods for free that were formerly not free
If there is a price ceiling, there will be
shortages
surpluses
equilibrium
If there is a price floor, there will be
shortages
surpluses
equilibrium
The agricultural price support program is an example of
a price ceiling
a price floor
equilibrium pricing