Economic models suggest that movie stars have salaries that
a. can only be explained by looking at specific movie stars and their individual salaries.
b. are about equal to their marginal revenue products.
c. understate their full contribution to the movie studio's revenue-as the celebrities are the main reason that people go to see movies.
d. greatly exceed their marginal contribution to the movie studio's revenue.
b. are about equal to their marginal revenue products.
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When Homer has 5 doughnuts, his marginal value is 15¢ per doughnut. We can conclude that Homer
a. places a value of 3¢ on each doughnut he owns. b. needs to purchase more than 5 doughnuts to reach his optimum. c. receives 75¢ worth of total satisfaction from his 5 doughnuts. d. would refuse to pay more than 15¢ for a sixth doughnut.
Why do governments generally prefer to impose tariffs over quotas?
What will be an ideal response?
If incomes in the United States increase, other things equal, then U.S. _____
a. imports increase and exports remain constant b. exports increase and imports decrease c. imports decrease and exports decrease d. imports remain constant and exports increase e. net exports remains constant
The lowest of the federal or state minimum wage levels prevails in each state
a. True b. False Indicate whether the statement is true or false