Which of the following statements about income and wealth distribution is true?

Inheritance distributes wealth more equally.

Discrimination in labor markets distributes income less equally.

Progressive tax makes income distribution less equal.

Access to quality education by a few distributes income more equally.

Differences in degree of labor specialization distributes income more equally.

The students in an economics class calculated cross-price elasticity to be zero. Which of the following could be the two goods considered?

The price of cars increases by 5 percent, and the quantity of butter remains constant.

The price of bread remains constant, and the quantity of butter decreases by 2 percent.

The price of cars increases by 5 percent, and the quantity of bikes increases by 5 percent.

The price of cars decreases by 2 percent, and the quantity of petrol increases by 2 percent.

The price of butter decreases by 7 percent, and the quantity of margarine decreases by 7 percent.

Assume that there are two major telecommunications companies in a country. Firm A controls 45%, and Firm B controls 37% of the telecommunications market. Firm C controls the remaining portion of the total sales. For the market structure to be an oligopoly, what must be true?

All firms sell the same exact product.

One firm must control the entire market.

There is a dominant strategy for all firms.

The is no price discrimination of consumers.

There are high barriers to entry into the market.

A worker can get paid $100 for a four-hour professional development course. If she must sacrifice making a product to sell online that earns her $10 per hour so she can attend the course, what is her opportunity cost?

$10

$25

$40

$100

$400

Which of the following questions help determine resource allocation in an economy?

How should goods and services be produced?

What percentage of workers should attend college?

Should factories be located in urban or rural areas?

Where can raw materials be acquired to produce goods?

What sort of work should be rewarded with high salaries?

Assume that all cell phone company workers are more productive because of a new technology. How does this affect the demand for labor in the telecommunications industry?

The quantity demanded of labor shifts to the left.

The market labor demand curve shifts to the left.

The market labor demand curve shifts to the right.

The slope of the market labor demand curve increases.

The slope of the market labor demand curve decreases.

Ceteris paribus, ________ will increase quantity demanded, while ________ will decrease demand.

a price increase; more buyers

a price decrease; fewer buyers

a price decrease; a general income increase

advertising; more buyers

advertising; an income increase