Suppose that an employer hires workers with blue eyes and workers with brown eyes. Each type of worker has the same productivity. Which of the following is correct if the employer discriminates by offering blue-eyed workers lower wages than brown-eyed workers?
a. The employer will be just as cost efficient as a nondiscriminating employer.
b. The employer will face higher costs than a nondiscriminating employer.
c. The employer will have lower costs.
d. The employer will have higher profits.
e. Both a and c are correct.
B
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Barometric price leadership exists when
a. one firm in the industry initiates a price change and the others follow it as a signal of changes in cost or demand in the industry. b. one firm imposes its best price on the rest of the industry. c. all firms agree to change prices simultaneously. d. one company forms a price umbrella for all others. e. the firms are all colluding.
Karl Marx and Friedrich Engels said
A. "The theory of the Communists may be summed up in the single sentence: Abolition of private property." B. "The vice of capitalism is that it stands for the unequal sharing of blessings; whereas the virtue of socialism is that it stands for the equal sharing of misery." C. "It is not the employer who pays wages-he only handles the money. It is the product that pays wages." D. "Capital is past savings accumulated for future production."