The following data show the relationship between the number of drivers who leave for work at 8 a.m., their average commute time, and their marginal benefit of commuting.Number of DriversWho Leave at 8 a.m.AverageCommute TimeMarginalBenefit10030 minutes$1020065 minutes$8300110 minutes$4400170 minutes$3500260 minutes$1 One way for the government to increase economic efficiency would be for it to:
A. subsidize gasoline consumption.
B. require all 500 drivers to collectively decide when each should leave for work.
C. require employers to allow workers to arrive late for work.
D. charge a toll to use the highway during rush hour.
Answer: D
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Define the following terms: a. Recession b. Mixed economy c. Transfer payments d. Progressive taxation
What will be an ideal response?
The Bureau of Labor Statistics reported the data in the table above for October 2003
a) Calculate the number of people unemployed. b) Calculate the number of people who are not in the labor force c) Calculate the unemployment rate. d) Calculate the labor force participation rate.
An attempt by a firm to create a monopoly and gain the economic profit from the monopoly is called
A) collusion. B) intrusion. C) profit seeking. D) rent seeking.
Under the marginal productivity principle,
A. the marginal economic profit of all inputs is zero at their optimal levels. B. the marginal physical product of each input is equal at their optimal levels. C. the marginal revenue product of each input is equal at their optimal levels. D. the slope of the marginal revenue product curve for each input is zero at the optimal level.