Refer to the diagram. Flow 1 represents:
A. wage, rent, interest, and profit income.
B. land, labor, capital, and entrepreneurial ability.
C. goods and services.
D. consumer expenditures.
A. wage, rent, interest, and profit income.
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Refer to Figure 15-11. What is the size of the deadweight loss prior to Verizon entering the market and what happens to this deadweight loss after Verizon does enter the market?
A) The deadweight loss of area C+D is converted to consumer surplus B) The total deadweight loss is the area D+F; D is converted to consumer surplus and F to producer surplus. C) The deadweight loss of area D is converted to consumer surplus. D) The deadweight loss of area D is converted to producer surplus.
When the federal government makes no attempt to take corrective action, markets return a recessed economy to full employment levels of production by
(a) laying off workers. (b) lowering wages. (c) dropping prices. (d) doing all of the above.
Considering the living arrangements of children in one-parent families, less than 10% of these were father only in 2005
Indicate whether the statement is true or false
If Helen gives up the opportunity to bake 40 cakes for each room she paints and Josh can paint one room in the time it takes him to bake 60 cakes, which of the following is true?
a. The opportunity cost of painting is higher for Helen. b. The opportunity cost of baking cakes is lower for Josh. c. The opportunity cost of painting one room is 1/40 of a cake for Helen. d. The opportunity cost of baking one cake is 60 rooms painted for Josh. e. The opportunity cost of cakes cannot be computed.