Question

Question 1.

A just distribution of income is hard define due to which of the following?

Select one:

a. What is just in not unique to a particular distribution of income.

b. There are not enough data.

c. People do not like to talk about justice.

d. Economists are not concerned about it.

Question 2.

All but which one of the following reasons help to explain the existence of many different wage scales?

Select one:

a. Wage discrimination exists.

b. Elasticities of labor supply differ.

c. Suppliers of resources are perfectly elastic.

d. Skills differ from one person to the next.

Question 3.

One can define the law of deminishing returns in terms of which one of the following?

Select one:

a. Long rum period.

b. Historical period.

c. Market period.

d. Short run period.

Question 4.

People with similar skills receive different wages because but one of the following?

Select one:

a. Nonmonetary consideration.

b. Economic discrmination.

c. Immobility of the resource.

d. Minimum wages laws.

Answer 1

1.

A

A just income for one set of people, may be unjust for the another set of people. Hence, it becomes very difficult to define the just income or just distribution of income.

2.

C

When resources are perfectly elastic, when they provide resources at one wage rate.

3.

D

Law of diminishing return is applicable only in the short run and it is applied when one factor of the production is not variable.

4.

D

Minimum wage laws only set the minimum wage that are required to be paid. It does not say to set different wage levels over and above the minimum wage level.