Which of the following is NOT an example of an explicit cost?
A. The income the owner could have earned in his or her next best employment opportunity.
B. The salaries paid to the managers who help run the business.
C. The overtime wages paid to workers.
D. The rent the owner pays each month to lease office space.
Answer: A
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The short run is
A) usually 3 - 6 months. B) dependent on the characteristics of the industry. C) when a firm has to decide whether or not to exit. D) identical to the long run for most firms.
Direct majority-rule voting is a form of coercion in the sense that
a. all citizens must vote b. all registered voters must vote c. the median voter's preferences determine the outcome for everyone d. the majority gets exactly what they want, but the minority does not. e. individuals with higher incomes get more votes
In the United States during the 1960s, government spending dramatically increased to fight the Vietnam War, which resulted in:
a. demand-pull inflation. b. cost-push inflation. c. a disinflationary recession. d. stagflation.
To represent a worker, a union must
a. simply receive the worker's permission b. receive a unanimous approval in an election c. receive a majority of the workers' votes in an election d. receive at least two-thirds of the workers' votes in an election e. receive the permission of the employer