Which of the following is a market imperfection that might explain persistent wage differentials within an occupation?

A. Geographical immobility of workers.
B. Readily available information about job opportunities and pay.
C. Principal-agent problems.
D. Compensating wage differentials.

Answer: A

Economics

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Assume that a very unusual production process involves increasing marginal productivity that appears to have no end. What would the total productivity function look like? Comment on the likelihood of such a function in the real world

What will be an ideal response?

Economics

Refer to Figure 7-1. Suppose the government allows imports of leather footwear into the United States. What will be the quantity of imports?

A) Q0 B) Q1 C) Q2 D) Q2 - Q0

Economics