Suppose all people have the same age-earnings profile and the percent of the population in each age category is the same. The distribution of income at any point in time will be
A) equal because all have the same profile.
B) equal because incomes and wealth levels must then be the same.
C) unequal because other sources of income will differ.
D) unequal because incomes differ by age.
Answer: D
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Comparing the minimum wages between 1974 and 2011 addresses the economic concept of
A) the principle of voluntary exchange. B) the principle of diminishing returns. C) the real-nominal principle. D) the marginal principle.
Recall the Application about the costs involved in opening a restaurant to answer the following question(s).Recall the Application. Because the restaurant industry is considered monopolistic competition, it is expected that in the long run, restaurant franchise owners earn:
A. zero economic profits. B. positive economic profits. C. zero accounting profits. D. negative accounting profits.