Question

Question 25

1. In economics, the term capital refers to

   	a.	money.
   	b.	stocks and bonds.
   	c.	equipment and structures used in production.
   	d.	All of the above are correct.

Question 26

1. A compensating differential is

   	a.	a difference in pay due to nonmonetary characteristics of different jobs.
   	b.	a high wage paid by employers to entice workers to be more productive.
   	c.	the difference between the quantity of labor supplied and the quantity of labor demanded at the minimum wage.
   	d.	due only to difference in the productivity of workers with different skills.

Question 27

1. A difference in wages between a highly-educated worker and a less-educated worker

   	a.	is considered unfair by everyone.
   	b.	is considered unfair by economists.
   	c.	may be a signal that the market is indifferent to a worker's level of human capital.
   	d.	may be due to a difference in the amounts of human capital between the workers.

Answer 1