The graph above shows supply and demand in the domestic market without trade. Producer surplus without trade is represented by area
A) P1-E-Po
B) P1-E-0
C) Po-E-0
D) P1-E-Qo
B
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According to opportunity-cost theory, if the public lost most of its interest in spectator sports,
A) athletes would have to charge more for their services in order to survive. B) the cost of hiring professional athletes would fall. C) the cost of hiring professional athletes would rise. D) the cost of hiring professional athletes would remain the same.
Unemployment compensation is an example of
A) a subsidized service. B) a regressive income program. C) a Social Security benefit. D) an income maintenance program.
The payment of interest on the public debt probably decreases income inequality.
Answer the following statement true (T) or false (F)
Assume that labor is the only variable input and that an additional input of labor increases total output from 72 to 78 units. If the product sells for $6 per unit in a perfectly competitive market, then the marginal revenue product of this additional worker is:
a. $78. b. $72. c. $36. d. $39. e. $6.