Jill is the best eye surgeon in town, and she earns $350,000 a year. Susan is an average eye surgeon in town, and she earns $100,000 a year. Jill's skills as a surgeon
a. are valued more by the market relative to Susan's and that explains why her income is higher than Susan's.
b. are valued less by the market relative to Susan's and that explains why her income is higher than Susan's.
c. are valued less by the market relative to Susan's and that explains why her income is lower than Susan's.
d. are more expensive because she receives a compensating differential.
a
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The federal funds market refers to the market where:
A) the Fed obtains loans of reserves from central banks of other nations. B) the federal government borrows overnight funds from the Fed. C) banks obtain loans of reserves from each other. D) there are no predetermined rates of interest on loans and the highest bidding borrower gets the loan.
A firm that is a monopsonist in the labor market and a monopolist in the product market will hire labor to the point at which
A) MFC = MRPm. B) a perfectly elastic labor supply = MRP. C) a perfectly inelastic labor supply = perfectly inelastic labor demand. D) where supply of labor = demand for labor.