Two good friends, Mojo Nixon and Natalie Mer chant, grew up together, went to the same schools, ranked identically in IQ testing, excelled in every subject, and went on to earn Ph.D.'s. Natalie became a professor of finance; Mojo became a professor of English. Both teach at the same college. Natalie earns $55,000, while Mojo earns $37,000. Is there economic injustice in this story? Perhaps discrimination? How can you explain the income differential?
Answer to relevant QuestionsIf the United States and Mexico agree to free movement of workers across their borders, wage rates in some U.S. labor markets would fall, but wage rates in some Mexican labor markets would rise. Explain. Monopolies earn monopoly profit. What is it that monopsonies earn? How is it derived? What acts are regarded as the most significant pieces of prolabor legislation? Graph the loanable funds market of question 3. Suppose the government imposes an interest rate ceiling of 12 percent. What consequences would the ceiling have on the loanable funds market? The souvenir shop next to Wrigley Field in Chicago sells sports banners for $5 each. The owner pays $1,000 monthly rent. Two blocks away from the baseball stadium, a souvenir shop sells the same banners for $3 each. The ...
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