When employees negotiate higher wages through collective bargaining, firms have incentive to use more capital and less labor in production.
a. true
b. false
Ans: a. true
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Professor Rush decided to quit teaching economics and opens a shoe store out at the mall. He gave up an annual income of $50,000 to open the store. A year after opening the shoe store, the total revenue for the year was $200,000
Rush's expenses were $30,000 for labor, rent was $18,000, and utilities were $1,200. He also had to purchase new shoes from manufacturers, at a cost of $60,000, which was financed by cashing in his savings of $60,000 that had been in a bank earning 8 percent per year. The normal profit from operating a shoe store in the mall is $20,000. Determine Professor Rush's explicit costs, implicit costs, and economic profit.
To reduce pollution, economists generally prefer a corrective tax to a command-and-control policy because the same goals can be achieved but in an efficient manner with a corrective tax.
Answer the following statement true (T) or false (F)
The long run is defined as the time period in which
A. the firm can alter its rate of production. B. the firm can vary only one input. C. all factors of production can be altered. D. the firm can make positive economic profits.
What is the difference between imports and exports?
What will be an ideal response?