A firm's private costs
A) include only its direct costs.
B) is the private profit minus the producer surplus.
C) include both direct and indirect costs.
D) exclude the taxes on any externalities generated.
A
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When there is a decrease in labor supply, real wages are likely to
A) remain the same. B) decrease. C) increase. D) allow less leisure time.
The equilibrium price is the price at which the quantity
A) sold equals the quantity bought. B) demanded equals the quantity sold. C) demanded equals the quantity supplied. D) supplied equals the quantity bought.
Gains from trade can only occur when
A) marginal rates of substitutions differ across people. B) marginal rates of substitution are equal across people. C) indifference curves are convex. D) people find themselves on the contract curve.
The slope of a curved line differs from that of a straight line in that
a. the numerical value of the slope of a straight line is different at every point, but is the same at every point for a curved line. b. the numerical value of the slope of a straight line is always higher than the numerical value of the slope of a curved line. c. the numerical value of the slope of a curved line is different at every point, but is the same at every point for a straight line. d. the numerical value of the slope of a curved line is an irrational number, but the numerical value of the slope of a straight line is always a rational number. e. straight lines are more realistic, but curved lines are not descriptively accurate for the real world.