Refer to Table 8.1. Assuming the price of labor (L) is $5 per unit and the price of capital (K) is $10 per unit, the total variable cost of producing one unit of output is
A) $16.
B) $100.
C) $120.
D) $220.
B) $100.
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What does it mean when economists say that labor and capital are complementary inputs?
What will be an ideal response?
Disappointed with problems caused by being a recipient of foreign aid from donor governments, the country of Upsilon should consider
a. refusing all future offers of aid b. privatizing of aid, such as receiving funds from private not-for-profit agencies c. becoming a donor instead d. seeking even more government-sponsored aid e. All of the answers are correct
The degree of income inequality produced by competitive markets, in Professor Rawls' view, is:
A. greater than the amount people would prefer. B. minor. C. acceptable. D. consistent with the ideal amount.
Government intervention to reduce the level of pollution is prompted by the existence of
A. An inequitable distribution of income. B. A monopoly. C. Negative externalities. D. Government failure.