Market producer surplus is the area above the market price and below the market supply curve
a. True
b. False
B
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Which of these goods may be considered rivalrous in consumption and nonexcludable?
A. wilderness areas B. national defense C. broadcast television reception D. fire insurance
In response to an increase in the wage rate, the substitution effect will cause a person to
A) supply fewer hours of labor. B) supply more hours of labor. C) supply the same hours of labor. D) have a backward bend in her labor supply curve.
The contributive standard (merit standard) for distributing income implies that
A) income should be distributed equally. B) income should be distributed according to need. C) income should be distributed according to the marginal productivity of workers. D) a transfer should be contributed to an individual above his or her contribution to net output.
Suppose that you run a house-painting company and currently have 2 workers painting a total of 4 houses per month. If you hire a third worker, 6 houses can be painted per month. If you hire a fourth worker, 9 houses can be painted, and a fifth and sixth worker will increase the number of houses painted to 13 and 15, respectively. Diminishing returns
A. set in when the sixth worker is hired. B. have not yet set in because output is still increasing. C. set in when the fourth worker is hired. D. set in when the fifth worker is hired.