Matt is offered a job driving the campus shuttle bus from 4 p.m. to 6 p.m. each Monday. His reservation wage for this job is $7 per hour. If the campus transportation director offers Matt $50 per hour, how much economic surplus will Matt enjoy as a result of accepting the job?
A. $50 per hour
B. $36 per hour
C. $43 per hour
D. $86 per hour
Answer: C
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A) imports equal transfer payments B) imports exceed exports C) exports exceed transfer payment D) exports equal imports
If workers expect inflation, and tend to overestimate actual inflation when they negotiate wage increases, the result will be a continuing
a. shift of AD to the left. b. shift of AD to the right. c. recessionary gap. d. inflationary gap.
Taxes on labor encourage which of the following?
a. labor demand to be more inelastic b. mothers to stay at home rather than work in the labor force c. workers to work overtime d. fathers to take on second jobs
A short-run open-economy model with demand shocks can analyze the effect on _____ if output prices and factor prices are sticky.
A) inflation B) real economic activity (real GDP and unemployment) C) long-run variables D) expectations