A business owner makes 50 items a day. Each day he/she contributes 8 hours to produce those items. If hired, elsewhere he/she could have earned $10 an hour. The item sells for $10 each. Production does not stop during weekends. If the explicit costs total $10,00 . for 30 days, the accounting profit for the month equals:
a. $1,760
b. $2,240
c. $11,760
d. $5,000
d
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A recession conventionally is defined as a decrease in
A) real GDP that lasts for at least six months. B) the growth rate of real GDP that lasts for at least six months. C) potential GDP that lasts for at least six months. D) real GDP that lasts for at least three months. E) the inflation rate that lasts for at least six months.
Gordon notes that along with slow labor productivity growth in the period 1973-1995, real wages also grew slowly
What sort of productivity shocks are consistent with this explanation of the link between real wage growth and the growth of labor productivity? A) productivity shocks which decrease supply of labor given the demand for labor B) productivity shocks which increase supply of labor given the demand for labor C) productivity shocks which increase demand for labor given the supply of labor D) productivity shocks which decrease demand for labor given the supply of labor
According to the graph shown, if the market goes from equilibrium to having its price set at $10 then:
A. producer surplus rises by area B, but falls by area E.
B. producer surplus rises by area B, but falls by area D + E.
C. producer surplus rises by area B + C, but falls by area D + E.
D. producer surplus rises by area B + C, but falls by area E.
Which of the following does PE represent?
a. equilibrium price
b. price ceiling
c. binding price
d. shortage price