Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Chapter 14, Problem 23RQ

What is the marginal cost of labor?

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Explain Professor Frederick's "cognitive reflection" test.
11:44 Fri Apr 4 Would+You+Take+the+Bird+in+the+Hand Would You Take the Bird in the Hand, or a 75% Chance at the Two in the Bush? BY VIRGINIA POSTREL WOULD you rather have $1,000 for sure or a 90 percent chance of $5,000? A guaranteed $1,000 or a 75 percent chance of $4,000? In economic theory, questions like these have no right or wrong answers. Even if a gamble is mathematically more valuable a 75 percent chance of $4,000 has an expected value of $3,000, for instance someone may still prefer a sure thing. People have different tastes for risk, just as they have different tastes for ice cream or paint colors. The same is true for waiting: Would you rather have $400 now or $100 every year for 10 years? How about $3,400 this month or $3,800 next month? Different people will answer differently. Economists generally accept those differences without further explanation, while decision researchers tend to focus on average behavior. In decision research, individual differences "are regarded…
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Chapter 14 Solutions

Principles of Economics 2e

Ch. 14 - If immigration is reduced, what is the impact on...Ch. 14 - What determines the demand for labor for a firm...Ch. 14 - What determines the demand for labor for a firm...Ch. 14 - What is a perfectly competitive labor market?Ch. 14 - What is a labor union?Ch. 14 - Why do employers have a natural advantage in...Ch. 14 - What are some of the most important laws that...Ch. 14 - How does the presence of a labor union change...Ch. 14 - What is the long-term trend in American union...Ch. 14 - Would you expect the presence of labor unions to...Ch. 14 - What are the main causes for the recent [tends in...Ch. 14 - What is a monopsony?Ch. 14 - What is the marginal cost of labor?Ch. 14 - How does monopsony affect the equilibrium wage and...Ch. 14 - What is a bilateral monopoly?Ch. 14 - How does a bilateral monopoly affect the...Ch. 14 - Describe how the earnings gap between men and...Ch. 14 - Describe how the earnings gap between blacks and...Ch. 14 - Does a gap between the average earnings of men and...Ch. 14 - Will a free market tend to encourage or discourage...Ch. 14 - What policies, when used together with...Ch. 14 - Describe how affirmative action is applied in the...Ch. 14 - What factors can explain the relatively small...Ch. 14 - Have levels of immigration to the United States...Ch. 14 - How would you expect immigration by primarily...Ch. 14 - What is the marginal cost of labor for a firm that...Ch. 14 - Given the decline in union membership over the...Ch. 14 - Are unions and technological improvements...Ch. 14 - Will union membership continue to decline? Why or...Ch. 14 - If it is not profitable to discriminate, why does...Ch. 14 - If a company has discriminated against minorities...Ch. 14 - If the United States allows a greater quantity of...Ch. 14 - If all countries eliminated all barriers to...

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