Individual farmers behave like perfect competitors but are still able to earn economic profits in the long run.
Answer the following statement true (T) or false (F)
False
Like other competitive firms, U.S. farmers can maintain economic profits only if they achieve continuing cost reductions. Above-normal profits obtained from current production techniques and prices aren't likely to last.
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Calculations make it clear that for the majority of current retirees, the rate of return on Social Security taxes and benefits was
A. lower than what would have been generated in private stock-market investments. B. greater than what would have been generated in private stock-market investments. C. riskier than what would have been generated in private stock-market investments. D. roughly equal to what would have been generated in private stock-market investments.
Answer the following statements true (T) or false (F)
1) Asymmetric information in the health care market has increased the supply of health care. 2) A moral hazard problem arises in the health care market because health insurance encourages people to overconsume health care. 3) Insurance companies use deductibles and copayments to control increases in the amount of health care demanded. 4) Because employer payments for health insurance are not subject to income or payroll taxes, government in effect provides a subsidy to health care.
As the quantity of labor employed by a firm decreases, labor's ________ increases
A) marginal cost B) value of marginal product C) marginal revenue D) average cost
You have two options for how to spend the afternoon. You can either go see a movie with your roommate or work as a tutor for the Math Department. From experience, you know that going to see a movie gives you $20 worth of enjoyment, and with your student discount, a movie ticket only costs $12. If you spend the afternoon working as a math tutor, you will get paid $45. On a typical day, you wouldn't be willing to spend the afternoon working as a math tutor for less than $35. What is your economic surplus from working as a math tutor instead of going to the movies?
A. $2 B. $8 C. $12 D. $10