Table 28.2 Firm AFirm BFirm CFirm DExternal Costs$0$________175$________Private Costs400250175200Social Costs________350$________250For which firm are all costs internalized in Table 28.2?
A. Firm A.
B. Firm B.
C. Firm C.
D. Firm D.
Answer: A
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Johnny has allocated $30 toward coffee and tea and feels that coffee and tea are perfect substitutes. Due to differences in caffeine levels, his MRS of tea for coffee equals two. If coffee and tea sell for the same price, Johnny will
A) spend all $30 on tea. B) spend all $30 on coffee. C) spend $20 on coffee and $10 on tea. D) be indifferent between any bundle of coffee and tea costing $30.
The supply curve that monopsonists face is different from the supply curves that firms in competitive labor markets face because with a monopsony,
a. many more workers are hired to produce the larger amount of output b. the supply curve of labor is relatively flat c. offering a wage lower than the market wage means having no workers d. the employer faces the market supply curve of labor e. the firm takes the market wage rate as given
Why is the value of leisure listed as a shortcoming in the measurement of GDP?
A. When households take time off for leisure, the activity is not counted in GDP. However, taking time off for leisure makes households better off. B. Because GDP increases when households take more leisure. C. Because leisure increases happiness only when we take a vacation with it. D. Because households really want to work every day, and leisure gets in the way of work.
Which of the following assets are counted in M1?
A. transaction deposits B. line of credit C. bonds D. mutual funds accounts