1. According to the neoclassical theory of distribution, the wages paid to workers
a.
reflect the market prices of the goods those workers produce.
b.
reflect the degree of market power held by the firms that pay those wages.
c.
fail to reflect those workers’ opportunity costs of leisure.
d.
are unrelated to the forces of supply and demand.
2. According to the neoclassical theory of distribution, the wages paid to workers depend on the
a.
supply of labor.
b.
demand for labor.
c.
marginal productivity of labor.
d.
All of the above are correct.
3. According to the neoclassical theory of distribution, the wages paid to John Deere tractor assembly line workers are
higher than those paid to fast food workers because assembly line workers
a.
have college degrees, on average, whereas fast food workers usually do not.
b.
produce a product of greater market value than do fast food workers.
c.
work in a less stressful environment than do fast food workers.
d.
are less likely to belong to a labor union than are fast food workers.