Angelina Jolie's economic rent from starring in a movie is equal to the difference between:
A. her final salary and what she could earn by starring in a different movie.
B. her initial salary offer and her final salary, including royalties.
C. her final salary and the average salary for leading actresses.
D. her final salary and the least she would be willing to accept to star in the movie.
Answer: D
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A perfectly competitive firm will hire workers up to the quantity at which the wage rate equals the
A) marginal revenue product of labor. B) marginal factor cost of labor. C) price of the extra output produced. D) average physical product of labor.
When the average buyer of an insurance policy is likely to have higher risk than others in his class, this is known as
A. adverse selection. B. moral hazard. C. asymmetric information. D. an HMO.
The Laffer curve is a relationship based on the presumption of an indirect relationship between government tax rates and gross domestic product (GDP)
Indicate whether the statement is true or false
(a) Fill in Table. (b) Is the firm a perfect or an imperfect competitor? Explain. (c) If the wage rate were $220, how many workers would be hired? How much would the total wage bill come to? (d) If the wage rate were $100, how many workers would be hired? How much would the total wage bill come to? (e) How many workers would be hired if the wage rate were $50? (f) How many workers would the firm want to hire if the wage rate were $0?
