Lyon, January, 2000 Econ 701 1. Will a shift from a wage system which pays only for hours worked in a mine lead to a different earning that one based upon “portal-to-portal” pay? 2. A company cannot have a monopoly if its shareholders receive only the normal rate of earnings on their stock in it. True, False or Uncertain. Explain. 3. “If as economic theorists have customarily assumed, labor seeks to maximize the net advantage of employment rather than their money wages, a competitive employer who practices the truck system would have had to pay his employees a money wage higher than his competitors by whatever amount was necessary to compensate them for the disadvantages of the truck system. This argument holds equally for a monopsonist.” George Hilton, JPE , 1957. Explain why you agree or disagree with this statement. 4. The price of oranges increased significantly after a sever frost in Florida, causing customers to spend more on oranges. News analysts attributed this result to a
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