You are more likely to repair a leaky drainpipe yourself than hire a plumber if _____.
a. the tax rate on your earned income dramatically decreases.
b. you need to purchase the specialized tools required to complete the repair work.
c. you possess less knowledge and experience in plumbing repair work.
d. doing the job yourself reduces the transaction costs.
e. the opportunity cost of your time increases.
Ans: d. doing the job yourself reduces the transaction costs.
You might also like to view...
Marginal revenue equals 0 when:
A) total revenue is increasing. B) total revenue is at its maximum. C) total revenue is decreasing. D) none of the above; marginal revenue is always positive.
The farther the Lorenz curve from the line of perfect equality, the lower is the income inequality
a. True b. False Indicate whether the statement is true or false
The marginal product of labor measures: a. the total amount of output produced by all workers combined
b. the quantity of an intermediate product that is combined with labor to produce output. c. the amount of output an additional worker contributes to a firm's total output. d. the average productivity of workers hired by a firm.
Based on Figure 6.1, how much revenue will the government raise from a $0.25 per bushel tariff on soybean imports?
A) The government will raise $2.5 million. B) The government will raise $5 million. C) The government will raise $15 million. D) The government will raise $32.5 million. E) The government will see no increase in income; because the country is small, foreign firms will simply not serve it after the tariff is imposed.