Matt is offered a job driving the campus shuttle bus from 4 p.m. to 6 p.m. each Monday. His reservation wage for this job is $7 per hour. Suppose the campus transportation director offers Matt $50 per hour. Will Matt accept this job?
A. No, accepting the job means a negative economic surplus for Matt.
B. Yes, although accepting the job means a negative economic surplus for Matt, it's still better than having no job.
C. No, although accepting the job means a positive economic surplus for Matt, still it's not the best option for him.
D. Yes, accepting the job means a positive economic surplus for Matt.
Answer: D
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_____ are elements of fiscal policy that automatically change in value as national income changes
a. Statistical discrepancies b. Exchange rates c. Budget deficits d. Automatic stabilizers e. Supply-side shocks
During the financial crisis of 2007-2009, why did the Federal Reserve begin to utilize various types of unconventional monetary policy?
a. the federal funds rate had already been increased as much as possible b. the discount rate had already been increased as much as possible c. the federal funds rate had already been reduced to zero d. the discount rate had already been reduced to zero
Explain why greater equality is inevitably gained at the expense of efficiency.
What will be an ideal response?
Mary deposits funds into a CD at her bank. The CD has an annual interest of 4.0%. If Mary leaves the funds in the CD for two years she will have $540.80. What amount is Mary depositing?
A. $500.00 B. $520.00 C. $512.40 D. $514.50