1.9. True or false? a. The marginal product of labor is the amount of extra profit that...

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1.9. True or false?

a. The marginal product of labor is the amount of extra profit that a firm will earn if it hires one more worker.

b. The benefit ofhaving a college education has increased since the 1960s.

c. The wage gap between high school gradu ates and high school dropouts has fallen since the 1960s.

d. By definition, a labor supply curve cannot have a negative slope.

e. Compensating differentials is a government program that pays injured workers.

f.

The main reason that an immigrant earns more when he moves from Algeria to France is be cause the French have strong labor unions.

g. If customers are racist and sexist, then self interest will tend to push entrepreneurs to engage in racist and sexist hiring.

h. If some employers are bigots but others are not, the bigoted employers will be able to hire good workers for less money and will tend to drive the fair-minded employers out of business.

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Modern Principles Microeconomics

ISBN: 9781429239998

2nd Edition

Authors: Tyler Cowen, Alex Tabarrok

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