The issue of inequality has become prominent because of
A. an increased sense of justice.
B. a decrease in the strength of capitalism.
C. the widening wage disparity.
D. a consistent fall in incomes.
Answer: C
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The principle that individuals and firms pick the activity level where the incremental benefit of that activity equals the incremental cost of that activity is known as the
A) spillover principle. B) principle of diminishing returns. C) principle of opportunity cost. D) marginal principle.
Collective bargaining refers to
a. the process by which the government sets exemptions from the minimum wage law. b. setting the same wage for all employees to prevent conflict among workers. c. firms colluding to set the wages of employees below equilibrium. d. the process by which unions and firms agree on the terms of employment.