Discrimination that results in minorities being paid less than whites for identical work would be an example of which explanation for wage differentials?
A. Noncompeting groups
B. Compensating differences
C. Market imperfections
D. Principal-agent problems
C. Market imperfections
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In a nutshell, what explains the chronic problem that farmers face in the United States? a. Farmers cannot produce sufficient quantities of food to keep up with the growing demands of consumers
b. There has been misuse of the price floor mechanism. c. An increase in the number of farms created agricultural overpopulation. d. Farmers have failed to adapt new technology in an ever-increasing technological world. e. The outward shift in the supply curve of the farm goods they produce has been greater than the outward shift in the consumers' demand curve for those goods.
A free trade area differs from a customs union in that
a. in a free trade area, members can establish their own tariff policies with respect to nonmembers b. in a free trade area, the rules are binding on members, but in a customs union they are mere guidelines c. a free trade area strives for low tariffs, but a customs union strives for high tariffs d. a free trade area uses a standardized currency, but in a customs union each nation retains its own currency e. the rules of a free trade area only apply to trade with nonmembers, but in a customs union the rules apply only to trade with members