Positions that involve a considerable amount of personal risk
a. typically have negative compensating wage differentials
b. usually have better fringe benefits for employees
c. have higher demand by firms
d. pay lower wages
e. typically have positive compensating wage differentials
E
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An increase in the number of fast-food restaurants
A) raises the price of fast-food meals. B) increases the demand for fast-food meals. C) increases the supply of fast-food meals. D) increases the demand for substitutes for fast-food meals.
Figure 6-2
illustrates the four possibilities of the structure of production and consumption for a good or service. When the structure of production and consumption for a good places it in quadrant B,
a.
consumers have little incentive to search out and patronize low-cost suppliers.
b.
private producers of such goods will have little incentive to operate efficiently and to keep prices low.
c.
goods and services will only be supplied if consumers are willing to pay an amount sufficient to cover their production costs.
d.
both a and b, but not c, will be true.