Economic profit affects:
A. the allocation of resources but not the level of resource use.
B. the level of resource use but not the allocation of resources.
C. the allocation of resources and the level of resource use.
D. neither the allocation of resources nor the level of resource use.
Answer: C
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Mary Jane is willing to babysit for $6 an hour. Her neighbor has asked her to babysit for $8 an hour. Assuming Mary Jane accepts the offer:
A. her accounting profit will be $8 per hour, and her economic profit will be $0 per hour. B. her economic rent will be $2 per hour. C. her consumer surplus will be $2 per hour. D. her economic profit will be $8 per hour.
A player has a dominant strategy when:
A) her chosen strategy gives her a lower payoff than the other player. B) her chosen strategy matches the best response of other players in the game. C) she has many best responses to any strategy of the other player in the game. D) she has only one best response to every possible strategy of the other player.
A public policy that would lower everyone's income but would lower the income of the rich faster than that of the poor would further the goal of _____
a. improving the lot of those worse off b. social justice c. income equality d. Pareto optimality
The Clayton Act was passed in:
a. 1887. b. 1890. c. 1914. d. 1936. e. 1952.