Under which of the following scenarios would a park be considered a club good?
a. Visitors to the park must pay an admittance fee, but there are always plenty of empty picnic tables.
b. Visitors to the park must pay an admittance fee and frequently all of the picnic tables are in use.
c. Visitors can enter the park free of charge and there are always plenty of empty picnic tables.
d. Visitors can enter the park free of charge, but frequently all of the picnic tables are in use.
a
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A minimum wage is a government-imposed price ________ that is designed to be ________ the equilibrium wage rate
A) ceiling; above B) ceiling; below C) floor; above D) floor; below
Keynesians believe that the interest elasticity of money demand
a. is lower than that believed by monetarists. b. is higher than suggested by monetarists. c. is completely elastic. d. is completely inelastic. e. none of the above.
If a firm is a price taker in both the labor market and the output market, it will
A) earn zero economic profit in the short run. B) hire labor until the marginal product of labor equals zero. C) hire labor until the marginal revenue product equals the output price. D) hire labor until the marginal revenue product equals the wage rate.
Bill is an accountant for a small machine shop. His boss has asked him to calculate the shop's total fixed cost. Which method will get Bill the correct answer?
a. c and d. b. Calculating the product of average total cost and quantity c. Determining what the shop would pay for if they produced zero output d. Subtracting the total variable costs from the total costs e. Subtracting total variable costs from total revenue