GDP calculations tend to exclude all of the following EXCEPT
A) environmental quality.
B) salaries paid to government employees.
C) illegal transactions.
D) work that people do for themselves in their own homes.
B
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A firm currently employs four workers in a sandwich shop, and produces sandwiches at a total cost per sandwich (ATC) of $3. The sandwiches sell for $5. If the marginal cost of hiring another worker to produce sandwiches is $5.50 per sandwich, then:
A. it will cost $5.50 to make another sandwich, which can only be sold for $5. B. the firm will lose $0.50 per sandwich if it hires another worker. C. the firm should not hire a fifth worker. D. All of these are true.
What would a rightward shift of the labor demand curve indicate?
a. Firms want to hire more workers than before at any given wage rate. b. Households want to supply more hours of work than before at any given wage rate. c. Firms want to pay a lower wage rate than before at any given level of employment. d. Households want to supply fewer hours of work than before at any given wage rate. e. Firms want to hire less workers than before at any given wage rate.
Which of the following is correct?
A. A person who purchases a corporate bond is guaranteed to earn dividends from the stock. B. A person who purchases a corporate bond is borrowing money from a corporation. C. A person who purchases a corporate stock is buying ownership in the corporation. D. A person who purchases a corporate stock gets the option to buy other shares at lower prices.
What is the assumption underlying public-choice theory?
A) Elected officials believe in cooperating with one another and they seek to avoid competition among themselves. B) The costs and benefits of being efficient are the same whether one is in the private sector or in the public sector. C) Individuals act within the political process to improve their own individual well-being. D) Resources in the public sector are not scarce.