Economic rent is the difference between _____________ and ________________.
Fill in the blank(s) with the appropriate word(s).
what someone is paid; what she would have been willing to accept
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A savings bank is a depository institution that ________
A) sells shares which it uses to purchase shares in U.S. Treasury bills B) makes mostly home-purchase loans C) is owned by a social or economic group D) makes mostly consumer loans
If the production of a good generates a detrimental externality, then at that level of production of the good under perfect competition,
A. MU = MSC. B. P < MPC. C. MPC < MSC. D. MPC > MSC.
Assume the market was in equilibrium in the graph shown. If the market price gets set to $14, which of the following is true?
A. Some producers gain surplus, but total surplus falls. B. Some consumers gain surplus, but total surplus falls. C. Some consumers lose surplus, but total surplus rises. D. Some producers lose surplus, but total surplus rises.
Explain why the marginal product of labor shown in Moe’s Production Function with One Variable, Labor, is higher with two employees than it is with six.
What will be an ideal response?