Indicate the answer choice that best completes the statement or answers the ques
ID: 1115364 • Letter: I
Question
Indicate the answer choice that best completes the statement or answers the question. 1. Two workers are employed in the same job by the same firm. However, they are paid different wage rates. This could be explained by differences in: a. the income effect. b. the price of the firm's output. c. their marginal products due to differences in ability d. working conditions at the workplace. e. their marginal products due to differences in the risk faced. 2. When the consumption of a good or service imposes costs to society that are not reflected in the market price of the good, a. a negative externality arises b. it implies that a renewable resource has been used in the production of the good c. a positive externality arises d. it implies that the good is a public good e. it implies that a nonrenewable resource has been used in the production of the good 3·The market value of a bond is a. directly related to the rate of interest on the bond b. inversely related to the rate of interest on the bond c. not related to the rate of interest on the bond d. directly related to the maturity date of the bond e. inversely related to the maturity date of the bond 4. If a union is able io increase the demand for union-made goods, then: a. wages will increase but employment of union labor will decrease. b. wages will increase and employment of union labor will increase. c. wages will decrease but employment of union labor will increase. d. wages will decrease and employment of union labor will decrease. e. the demand for nonunion labor will increase. 5. The following graph shows equilibrium in a market in the presence of an extermality. If technology is fixed discrepancy between the market output and the efficient level of output is eliminated by . Figure 17.2 Page 1 Copyright Cengage Learning. Powered by Cognero.Explanation / Answer
1c) is correct answer
it is because it depends on skill of labor .wages are directly proportional to skill if someone has greater ability to work he is paid more.
2.a) is correct answer
it is a cost suffered by a third party due to the action of someone example chemical industry produces Chemicals and dump it's wastage in nearby river Where a small farmer is engaged in pisciculture and hence the waste is external cost to him.
3.b) is correct answer
value of bond isinversely proportional to interest rate which means at higher interest rate market value of bond decrease and vice versa.
4.b) is correct ans
It is because when demand for Union good increases then production increases hence employment increases since the employment increases hence the wages of union labor increases.