Suppose there are ten people playing cards in a room. One of them wants to smoke a cigar, nine of them dislike the smell of cigar smoke. The smoker values the privilege of smoking at $5, and each of the other nine people of the room would be willing to pay fifty cents for clean air in the room. The rules governing use of the room state that smoking is not allowed unless everyone agrees to allow smoking. If the cigar smoker paid each other occupant fifty cents for the right to smoke, the cigar smoker would be ________ and the other occupants would be ________.
A. better off; better off
B. better off; just as well off as before the payment
C. better off; worse off
D. worse off; just as well off as before the payment
Answer: B
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Which of the following statements correctly describes the curves in the figure?
A) Curve A could represent either the average product curve or the marginal product curve. Curve B represents the total product curve. B) Curve B could represent either the average product curve or the marginal product curve. Curve A represents the total product curve. C) The marginal product of labor curve is represented by curve B and the average product of labor curve is represented by curve A. D) The marginal product of labor curve is represented by curve A and the average product of labor curve is represented by curve B.
All of the following will shift the demand curve for capital, except:
a. future expectations about the demand for the good produced by a firm. b. technological changes. c. the price of capital. d. the entry of new firms into the market. e. the change in the interest rate.
Compounding refers to the
A. process of earning interest on both the principal and the interest of an investment. B. internal rate of return a firm earns on an investment. C. real interest return after taxes. D. calculation of after tax interest returns.
Mexico can produce vine-ripened tomatoes at a lower opportunity cost than firms in the United States. Through trade negotiations, the United States lifted quotas limiting the import of tomatoes from Mexico. Some firms in Florida, in the face of this new competition, had to close their farms and their workers lost their jobs. Many of the workers could not find new jobs right away. What type of unemployment describes the workers' situation?
A. Cyclical unemployment B. Structural unemployment C. Full unemployment D. Target unemployment