When the benefit of another hour of work is greater than the opportunity cost, we would expect the worker to work:
A. another hour.
B. an hour less.
C. exactly that amount.
D. Cannot be determined without more information.
A. another hour.
You might also like to view...
What does it mean to "monetize the deficit"? Why is it important in discussions of fiscal policy? Use an appropriate diagram to illustrate your answer
The Price Elasticity of Demand is a negative number this means:
a) Demand is price elastic. b) Demand is price inelastic. c) The demand curve is downward sloping. d) An increase in income will reduce the quantity demanded.
It can be shown that differences in "beforetrade" relative prices will determine:
a. which nation has the absolute advantage. b. which good each nation will export or import. c. the quantity traded by each nation. d. which nation has the comparative advantage.
Consider two restaurants located next door to each other: Quick Burger and The Sunshine Café. If Quick Burger opens a drive-through window, the increased traffic and noise will bother customers seated outside at The Sunshine Café. The table below shows the monthly payoffs to Quick Burger and The Sunshine Café when Quick Burger does and does not operate a drive-through window. Quick Burger Operates aDrive-Through WindowQuick Burger Does NotOperate Drive-Through WindowQuick Burger$24,000$15,000The Sunshine Café$11,000$23,000If Quick Burger has the legal right to operate a drive-through, and Quick Burger and The Sunshine Café can negotiate with each other at no cost, then will Quick Burger operate a drive-through window?
A. Yes, because Quick Burger's payoff is higher when it operates a drive-through. B. No, because it is not socially efficient to operate a drive-through. C. No, because it would lower the payoff for The Sunshine Café. D. It cannot be determined.