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. Now suppose the director offers Matt $50 per hour, but also announces that Matt's earnings will be divided equally among Matt and the 99 other students who live in Matt's dorm. What will be Matt's economic surplus from accepting the job?
A. -$6.00 per hour
B. -$6.50 per hour
C. $0.50 per hour
D. $1.00 per hour
Answer: B
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Since the 1960s, the share of the labor force that is unionized in the United States has
A) increased except for the government sector. B) increased. C) declined. D) declined except in the private sector.
Any dominant equilibrium implies:
a. a sequential game b. instability c. a price-taking equilibrium d. a Nash equilibrium
Average total cost reveals how much total cost will change as the firm alters its level of production
a. True b. False Indicate whether the statement is true or false
The three pillars of productivity growth does not include an
A. increase in the rate at which the economy builds up its stock of capital. B. increase in population. C. increase in the rate at which technology improves. D. increase in the rate at which workforce quality improves.