Suppose the short-run production function is q = 10 ? L. If the wage rate is $10 per unit of labor, then AFC equals
A) 0.
B) 1.
C) 10/q.
D) It cannot be determined from the information provided.
D
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The alternate-section provision was designed to:
a. allow the government to share in increased land values resulting from railroad building. b. encourage private businesses to locate along railroad routes. c. discourage farmers from cultivating crops near railroad routes. d. make railroad stations more accessible to families.
Your neighbor has knowledge of economics and you would like her to share it with you. You own a car, a CD player and a new pair of running shoes. You wish to make a trade, but the neighbor does not want what you have. The problem can be stated as follows: You are not satisfying the
A) rule of transaction costs. B) double coincidence of wants. C) law of marketability. D) terms of a common denominator.
Explain some important situations where direct controls have a clear advantage over taxes.
What will be an ideal response?
An outcome is socially optimal if it:
A. maximizes total economic surplus. B. is determined by the government. C. leaves no unexploited opportunities for individuals. D. is an equilibrium outcome.