A firm pays the same wage rate to all its workers. At present, 10 workers are employed at $50 per day. Wages are subsequently raised to $55 per day in order to attract an extra worker. Thus the marginal labor cost per day is:
A. $5
B. $10
C. $55
D. $105
D. $105
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The farmer pays 20 cents for the seed that is sold to the miller for 35 cents; the miller makes flour and sells it to the baker for 55 cents. The baker makes bread and sells it to the grocery store for 80 cents and the store sells it to consumers for $1.00. The contribution to Gross Domestic Product (GDP) is
a. $1 b. $2 c. $3 d. $4
If real GDP grows at 3 percent a year, the quantity of money grows at 5 percent a year, and the velocity of circulation is constant, then the price level must be
A) increasing at 8 percent a year. B) decreasing at 2 percent a year. C) increasing at 15 percent a year. D) increasing at 2 percent a year. E) decreasing at 8 percent a year.
Producer surplus is the difference between the
A) price and the willingness to pay for the good. B) price and the marginal cost of producing the good summed over the quantity sold. C) willingness to pay for the good and the marginal cost of producing the good summed over the quantity sold. D) marginal benefit of consuming the good and the marginal cost of producing the good summed over the quantity sold.
Releasing more information, in a common-value auction is
a. Good for the bidders because it reduces the risk that they face b. Good for the auctioneer because it attracts more bidders c. Good for the bidders because they are less likely to bid more on the item than it's worth d. Both A&B